Rivian Automotive price target lowered to $22 from $25 at Needham

Needham analyst Chris Pierce lowered the firm’s price target on Rivian Automotive to $22 from $25 but keeps a Buy rating on the shares. The analyst states that while the firm disagrees with bearish investors who see Rivian becoming demand constrained in real time, it is reducing its FY24 delivery estimates to better reflect potential initial FY24 vehicle production guidance, which is pushing Needham’s gross margin estimates lower. The firm adds however that used vehicle pricing data and vehicle inventories support its confidence in Rivian end demand, which mirrors third parties showing high levels of satisfaction among the owners.