Rivian to be Removed from Nasdaq-100 Index
JP Morgan Analyst Initiates Coverage with Underweight Rating
Electric carmaker Rivian Automotive RIVN will be removed from the Nasdaq-100 index on June 20, 2023, due to its low stock weighting. The Nasdaq-100 comprises the 100 largest non-financial companies listed on the Nasdaq stock exchange.
Rivian's Stock Performance
Rivian's stock has been declining since its November 2021 initial public offering, when it reached a high of $179.47 per share. As of May 10, 2023, the stock was trading at $30.29 per share, a drop of over 80%.
Analyst Coverage
On May 10, 2023, JP Morgan analyst Ryan Brinkman initiated coverage of Rivian with an Underweight rating and a price target of $25 per share. Brinkman cited concerns about Rivian's competitive landscape and its ability to ramp up production.
Nasdaq-100 ESG Index
Rivian will also be removed from the Nasdaq-100 ESG Index, which tracks companies with strong environmental, social, and governance (ESG) practices. The index uses a proprietary methodology to evaluate companies' ESG performance.
Rivian's removal from the Nasdaq-100 and Nasdaq-100 ESG indices reflects its declining stock performance and investor concerns about its competitive landscape and production capabilities.
Comments