Street Calls of the Week
On Friday, Benchmark analyst Mickey Legg reaffirmed a Buy rating for Rivian Automotive Inc (NASDAQ:RIVN), maintaining the company’s $18.00 price target. Legg’s endorsement follows Rivian’s fourth-quarter revenue report, which surpassed expectations with $1.7 billion compared to the predicted $1.2 billion by Benchmark and the $1.5 billion consensus. Rivian achieved a gross profit of $170 million, translating to a 10% margin. According to InvestingPro data, the company’s revenue has grown by 12.09% over the last twelve months, reaching nearly $5 billion, though its gross profit margins remain challenged at -24.14% overall.
Rivian’s commitment to reaching a modest gross profit for the full year 2025 aligns with Benchmark’s model. Despite offering a conservative vehicle delivery guidance for 2025, with an estimated range of 46,000 to 51,000 vehicles—lower than Benchmark’s previous estimate of 56,000 and the consensus of 55,000—the analyst believes Rivian’s path to profitability remains on course. InvestingPro analysis reveals 8+ additional key insights about Rivian’s financial health and market position, available exclusively to subscribers through detailed Pro Research Reports.
The electric vehicle manufacturer also provided further guidance for 2025, anticipating an adjusted EBITDA loss between $1.7 billion and $1.9 billion, and capital expenditures ranging from $1.6 billion to $1.7 billion. Legg notes that although short-term market conditions are uncertain, Benchmark is optimistic about Rivian’s operational efficiencies in 2025 and the upcoming launch of the R2 model in 2026. These factors are expected to drive Rivian to profitable growth.
Rivian’s financial performance and forward-looking strategies appear to resonate with Benchmark’s analysis, suggesting a steady trajectory towards the company’s financial goals. With the anticipation of the R2’s launch, Rivian is poised to potentially expand its market presence and enhance its profitability in the coming years.
In other recent news, Rivian Automotive Inc has been the subject of several analyst reports following its fourth-quarter financial results. Needham analysts raised their price target for Rivian shares to $17, maintaining a Buy rating, citing the company’s strong gross margins and potential in the electric vehicle market. Mizuho (NYSE:MFG) Securities also adjusted its outlook, increasing the price target from $11 to $13 while keeping a Neutral rating, acknowledging improved profitability and a slight increase in vehicle deliveries. Cantor Fitzgerald downgraded Rivian from Overweight to Neutral but raised the price target to $15, reflecting a cautious outlook on future performance and adjusted delivery forecasts.
Goldman Sachs held a Neutral rating with a $14 target, noting significant decreases in the cost of goods sold and improvements in supply chain efficiency. The analysts highlighted Rivian’s advancements in software and services, including plans for enhanced driver-assistance systems. Despite these positive developments, Rivian’s guidance for 2025 suggests a decrease in full-year deliveries, attributed to reduced deliveries to Amazon (NASDAQ:AMZN) and challenging market conditions. The company’s expansion strategy includes opening 30 new service locations in 2025, bringing the total to 101, as part of its effort to increase its service footprint. These recent developments reflect varied analyst perspectives on Rivian’s financial health and market position.
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