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Investing.com - Benchmark has reiterated its Buy rating and $18.00 price target on Rivian Automotive Inc (NASDAQ:RIVN) following the electric vehicle maker’s second-quarter earnings report. According to InvestingPro data, analyst targets for RIVN range from $7.05 to $21.00, with the stock currently trading near Fair Value levels.
Rivian reported Q2 revenue of $1.3 billion, which aligned with consensus estimates and exceeded Benchmark’s projection of $1.1 billion. The company posted a gross profit of $(206) million, falling short of Benchmark’s forecast of $(135) million, which the firm attributed to lower production volume and under-absorption of fixed costs. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 3.44 and holds more cash than debt on its balance sheet, though it continues to face challenges with negative gross profit margins of -4.31%.
Management reaffirmed expectations for modest full-year breakeven gross profit, consistent with Benchmark’s model. Rivian’s full-year 2025 guidance includes 40,000-46,000 vehicle deliveries, while Benchmark models 41,500 deliveries.
The company also projects an adjusted EBITDA loss of $2.0-$2.25 billion and capital expenditures of $1.8-$1.9 billion for the full year 2025.
Despite acknowledging near-term macroeconomic and policy uncertainties, Benchmark expressed confidence in Rivian’s improving operational efficiency and believes the R2 launch planned for 2026 positions the company to scale toward long-term profitability.
In other recent news, Rivian Automotive Inc reported second-quarter revenue of $1.303 billion, slightly surpassing analyst expectations of $1.290 billion, aided by higher average selling prices. The company’s software and services segment also saw growth, increasing to $376.0 million from $318.0 million in the previous period. Despite these positive revenue figures, Rivian’s quarterly EBITDA fell 35% short of consensus estimates, as highlighted by Bernstein, which reiterated its Underperform rating due to increased tariff costs and diminishing emission credit revenues.
Cantor Fitzgerald maintained a Neutral rating on Rivian, noting the company’s advantageous partnerships with Amazon (NASDAQ:AMZN) and Volkswagen (ETR:VOWG_p) but expressing concerns over delivery guidance. Meanwhile, Mizuho (NYSE:MFG) adjusted its price target for Rivian to $12, citing concerns over electric vehicle growth, with vehicle deliveries showing a 23% year-over-year decline. Wedbush lowered its price target to $16, maintaining an Outperform rating despite the EV headwinds. Needham also reduced its price target to $14, reflecting a more cautious demand outlook and a widened 2025 adjusted EBITDA loss guidance.
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