Causes of the Most Recent Rise in Copper Prices

Wells Fargo Bank has lowered its price objective for Rivian Automotive (NASDAQ:RIVN) from $18.00 to $14.00 and reaffirmed its Equal Weight rating on the stock ahead of the company’s 1Q earnings release, which is set for Tuesday after the closing bell. Wells Fargo analysts revised their projections in a note to account for the new debt issue and Q1 deliveries. Despite lowering their EPS projection due to current negative margins, the analysts pointed out that Q1 deliveries of 7,946 exceeded their estimate of 7,010.

Even so, Wells Fargo Bank maintained their 50K delivery estimate in accordance with Rivian’s recommendations. At -$4.5B, they are still marginally below the company’s adjusted EBITDA guide of -$4.3B. In order to account for the negative impact of the increased Q1 unit output, the analysts also reduced their FY23 EPS projections from -$5.90 to -$6.00. Additionally, they lowered their predictions for FY24, FY25, FY26, and FY27 to account for increased interest costs associated with Rivian’s most recent $1.3 billion Green bond offering.

Rivian issued $1.3 billion in green convertible bonds in March.

After depleting $6.4 billion in 2022, their cash balance now stands at over $12 billion. Monday’s pre-market trading saw a 0.45% increase in shares of Rivian stock, RIVN. Reference