Alexander Potter, an analyst from Piper Sandler, reiterated the Buy rating on Rivian Automotive (RIVN – Research Report). The associated price target remains the same with $21.00.
Alexander Potter has given his Buy rating due to a combination of factors that suggest a positive outlook for Rivian Automotive. The company’s first-quarter earnings call was notably uneventful, with no major hiccups in re-tooling processes, which is a critical aspect as it implies no significant cost overruns or delays. Furthermore, Rivian’s financial results, including revenue and average selling price, have outperformed Piper Sandler’s and consensus estimates, reinforcing confidence in the company’s financial health and operational efficiency.
Additionally, management’s affirmation of the production and EBITDA forecasts for 2024 and their expectation to achieve a positive gross margin by the fourth quarter of the same year bolster the optimistic view. The reduction in capital expenditure estimates due to production being set up in Illinois, coupled with a monetary incentive from the state, also augurs well for the company’s cash burn. These financial dynamics, combined with a stable discounted cash flow-based price target and an unchanged weighted average cost of capital, underpin Potter’s Buy recommendation for Rivian Automotive.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $20.00 price target.
RIVN’s price has also changed dramatically for the past six months – from $17.420 to $10.250, which is a -41.16% drop .
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Rivian Automotive (RIVN) Company Description:
Rivian Automotive Inc designs, develops and manufactures category-defining electric vehicles and accessories.
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