Rivian (RIVN.us) shares remain under pressure with its price candlesticks below its black 30-week EMA and the EMA turned down. Its weekly RSI is also below 50 (green rectangle), suggesting a negative underlying momentum.
Last week Rivian stock dropped 22% after giving disappointing guidance and stating that it wanted to raise more funds by issuing convertible notes.
However, yesterday UBS analyst Joseph Spak upgraded Rivian stock from Hold to Buy. He did cut his target from $26 to $24 per share. However, this still represents a premium of 22% from current levels.
Spak was not surprised by the capital raise given that Rivian is a start-up. He sees the company's fundamentals improving with rising sales. Moreover, Spak sees an improvement in production, forecasting 55,000 units for this year, which is better than the company estimate of 52,000 units.
This upgrade follows an upgrade by Evercore ISI analyst Chris McNally, who moved his price target from $30 to $35 per share. Currently around 60% of covering analysts rate Rivian a Buy.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.