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Investing.com - Benchmark has reiterated its Buy rating on Rivian Automotive Inc (NASDAQ:RIVN) with an $18.00 price target following an investor call with the company’s VP of Finance, Derek Mulvey. The target represents potential upside from the current price of $11.93, with analyst targets ranging from $7.05 to $21.00. InvestingPro data shows the stock has an overall Financial Health score of "FAIR."
The research firm expressed confidence in Rivian’s growth trajectory, operational execution, and ability to scale production as it prepares for the R2 launch. Benchmark believes Rivian is well-positioned to leverage its technology, brand, and partnerships to capture significant market share in the premium electric vehicle segment. The company’s strong liquidity position, with more cash than debt on its balance sheet and a healthy current ratio of 3.44, supports these expansion plans.
Benchmark’s analysis suggests Rivian’s strategy to expand into more affordable vehicle segments remains on track. The firm maintains that Rivian’s multi-year product roadmap, software-driven differentiation, and strategic partnerships support its investment thesis.
The research firm acknowledged near-term volatility from policy shifts but concluded these concerns are outweighed by medium-term production and margin expansion opportunities for the electric vehicle manufacturer.
Benchmark expects Rivian to scale profitably and believes the company deserves a premium valuation multiple compared to its peers in the electric vehicle market.
In other recent news, Rivian Automotive Inc has faced multiple adjustments in stock price targets from various analyst firms following its second-quarter earnings report. Morgan Stanley lowered its price target on Rivian to $12, citing concerns about the upcoming R2 vehicle launch and the significant capital required for autonomous vehicle technology. DA Davidson also reduced its target to $13, highlighting profitability challenges and the impact of tariffs on per-vehicle profits. Stifel adjusted its target to $16, noting issues such as tariffs, the end of $7,500 EV tax credits, and production line downtime. TD Cowen lowered its target to $13 due to an EBITDA miss and guidance reduction, attributing these to industry headwinds. Piper Sandler reduced its price target to $14, pointing to concerns about electric vehicle demand. These developments reflect ongoing challenges for Rivian as it navigates a competitive and evolving market landscape.
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