UBS lowered its rating on Rivian Automotive (RIVN) to Sell from Neutral on what the firm sees as an unfavorable risk-reward profile due to limited autonomous vehicle catalysts on the near-term horizon.
Analyst Joseph Spak noted that Rivian has rallied by more than 15% since the company held its Autonomy and AI Day event in December because investors bought into the AI potential. However, Spak and his team believe that most of the AI-related news is now out. “The other point of enthusiasm is the launch of the R2, and while we like the vehicle, expectations may be too high; our 2026/27 sales forecast is 16/19% below consensus, and current stock prices in ’27 sales are ~25% above UBSe,” he advised.
It was also noted that CES revealed AV tech from Nvidia (NVDA) and Ford Motor (F) that could crimp Rivian’s (RIVN) plans to sell or license its technology in the future to major automakers.
UBS assigned a price target of $15 to Rivian Automotive.
Shares of Rivian (RIVN) fell 8.8% in Wednesday afternoon trading to $17.20.