Piper Sandler lowered the firm’s price target on Rivian Automotive to $15 from $21 and keeps a Neutral rating on the shares following Q4 results that will likely prompt Street-wide estimate cuts. In hindsight, the firm says its forecast set an unrealistically high bar, given the disruptive impact of factory shutdowns in 2024. Nonetheless, with revenue unlikely to grow materially vs. 2023, Piper thinks bears may point to demand as a reason for slowing delivery growth. It will be several quarters before Rivian emerges from its production stoppage with a leaner cost structure and a redesigned R1 platform. In the meantime, the firm believes skeptics will be scrutinizing the cash balance and ringing alarm bells.
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