Rivian Automotive RIVN analysts are cautious on the short-term outlook for the electrical car firm with provide chain considerations, after the corporate missed third-quarter income and earnings per share estimates.
The Rivian Analysts:
- Truist analyst Jordan Levy maintained a Maintain score on Rivian with a $12 value goal.
- Wedbush analyst Daniel Ives maintained an Outperform score with a $20 value goal.
- Needham analyst Chris Pierce reiterated a Purchase score and lowered the worth goal from $18 to $14.
- Piper Sandler analyst Alexander Potter maintained an Obese score and lowered the worth goal from $21 to $19.
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Truist on RIVN: Proof of profitability for Rivian’s R1 car could also be essential to instill confidence within the R2 launch, Levy stated in a brand new investor be aware.
“RIVN’s third quarter outcomes have been mired by the corporate’s beforehand reported part scarcity, although a big anticipated 4Q uptick in regulatory credit score gross sales + realization of cost-down from Gen 2 fashions enabled the corporate to reiterate its 4Q constructive GM (gross margin) goal,” Levy stated.
The analyst stated Rivian must show constant profitability to assist traders acquire confidence.
Rivian’s tailwind of resolving provide chain points was not a shock to traders, Levy added.
“Whereas we’re incrementally constructive on the timeline reiteration for R2, we see the latest election outcomes and the incoming administration being an overhang over your complete home EV market in the intervening time given the uncertainty.”
Wedbush on RIVN: The electrical car firm made progress and noticed sturdy demand within the third quarter, however Ives stated in a brand new investor be aware that there’s extra work forward.
Ives stated Rivian took two steps ahead however one step again as the availability chain challenges harm the corporate’s plan to ramp up manufacturing.
“Rivian didn’t anticipate such massive provide ramp challenges this quarter, nevertheless, it must be nicely sorted over the following few quarters as the corporate remains to be on monitor by way of timing the R2 manufacturing launch,” Ives stated.
A provide partnership introduced with LG on Thursday and the pending launch of the Volkswagen VWAGY three way partnership are “crucial items” for the way forward for Rivian, Ives added.
“Though we nonetheless stay assured within the long-term Rivian imaginative and prescient, it would take some critical strides for the corporate to regain belief within the short-term imaginative and prescient within the eyes of the Avenue.”
Needham on RIVN: Scale and margins are bearish speaking factors for the Rivian story, Pierce stated in a brand new investor be aware.
“We proceed to view RIVN as a long-term winner within the eventual ICE to EV transition, leaning on its capability to create a model and produce automobiles that drive excessive ranges of buyer ardour and satisfaction,” Pierce stated.
The analyst stated R2 manufacturing enhancements are the important thing focus for 2025 with R2 manufacturing set to start within the first half of 2026. Car profitability for the R2 is predicted to be reached sooner than the R1 and shall be a key issue to look at, the analyst added.
The analyst additionally highlighted a three way partnership with Volkswagen anticipated to shut within the fourth quarter.
“RIVN’s stability sheet has been considerably strengthened the Volkswagen announcement, eradicating any further fairness wants vs our prior mannequin, permitting for the next stage of investor endurance.”
Piper Sandler on RIVN: The third-quarter outcomes and commentary had no surprises, resulting in growing significance for the three way partnership with Volkswagen closing as the following catalyst, Potter stated in a brand new investor be aware.
“The inventory has faltered lately, partially because of slower manufacturing, and partially (in our view) as a result of a JV with Volkswagen has but to be finalized,” Potter stated.
The analyst stated the three way partnership phrases might proceed to be a narrative within the coming weeks and will see Rivian’s valuation develop.
“We are going to overview our mannequin as soon as the JV phrases are introduced.”
RIVN Worth Motion: Rivian inventory is down 0.48% to $10.00 on Friday, versus a 52-week buying and selling vary of $8.26 to $24.62. Rivian inventory is down 51% year-to-date in 2024.
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