Mizuho Picks Over Rivian, Tesla Data, Says Buy the Shares but Reset Target Expectations

Source: jetcityimage / iStock Editorial via Getty Images

Mizuho analysts cut their price targets for three electric vehicle (EV) makers due to increasing consumer headwinds expected in 2023. The analysts cut Tesla’s (US:TSLA) price target to $285 per share from $330. They trimmed their targets to $28 and $50 per share for Nio (US:NIO) and Rivian (US:RIVN), respectively, down from $34 and $58.

In a note to clients, they cited high interest rates, energy prices, and financing rates as factors that could squeeze affordability and hinder growth in the auto market. The analysts maintained “Buy” ratings for all three EV companies and reduced 2023-2024 production estimates for Tesla and Rivian.

They preferred Rivian in the near term, citing the company’s production ramp, exposure to the US SUV market, and a 32% discount to Tesla on a price-to-sales basis.

Meanwhile, Cantor Fitzgerald analysts initiated Rivian coverage with an Overweight rating and a $30 per share target. They cited Rivian’s differentiated product offering, strong Amazon backing, and a proprietary charging network for the positive rating. The analysts also pointed out that Rivian’s shares have dropped 79% year-to-date, making it a potentially attractive entry point for new investors.

This article originally appeared on Fintel

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.