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Piper Sandler reiterated an Overweight rating on Rivian Automotive (NASDAQ:RIVN) on Tuesday, but issued a warning that China’s zero-tolerance COVID policy could impact the automaker’s supply chain.
Analyst Alexander Potter: “We believe in the strategy; we wouldn’t sell RIVN based on early production cuts. But beware: a COVID resurgence in Asia may further impact semiconductor supply chains. China auto production has grown at a robust pace so far in 2022… but COVID-induced factory closures could have ripple effects, both in China and beyond.”
11 out of 15 firms covering Rivian Automotive (RIVN) still have a Buy-equivalent rating or higher despite the prolonged share price slump. Many of those firms were locked in as bulls right when the quiet period expired on the EV stock.
Rivian Automotive (RIVN) fell on Tuesday even with about half of the electric vehicle sector showing a gain. After breaking to a new 52-week low of $33.76 in early trading, shares of RIVN are more than 50% below the 100-day moving average.
