Fubotv earnings beat by $0.10, revenue topped estimates
On Monday, Bernstein analysts maintained their Underperform rating on Rivian Automotive Inc (NASDAQ:RIVN) with a steady price target of $6.10, significantly below the current market cap of $13 billion. The firm’s analysis suggests that despite some positive revenue adjustments due to pricing tailwinds, increased net debt leads them to uphold their valuation. According to InvestingPro data, Rivian’s revenue stands at $4.97 billion for the last twelve months, with concerning gross profit margins of -24%. The investment research firm continues to apply a multiple of 1x to Rivian’s estimated 2030 sales to determine its target price.
Bernstein analysts commented on the stock’s recent performance, noting that Rivian shares have outperformed global automotive original equipment manufacturers (OEMs) since the tariff announcement. Their concerns about financial health are supported by InvestingPro data, which shows an EBITDA of -$3.66 billion and negative free cash flow of -$2.86 billion in the last twelve months. The analysts see the risks to Rivian’s balance sheet as significant, which underpins their decision to maintain the Underperform rating.
The price target of $6.10 is based on a long-term view, factoring in the company’s sales projections for the year 2030. While acknowledging the short-term benefits from pricing, Bernstein’s stance reflects a cautious outlook on Rivian’s financial trajectory over the coming years.
In their statement, Bernstein analysts highlighted a "fresh catalyst" but did not specify what this entails. The term suggests that there may be new information or events that could potentially impact Rivian’s stock performance or valuation in the future.
Rivian, known for its electric vehicles, has been a part of the broader conversation about the future of the automotive industry and the shift towards electrification. The company’s stock has seen varying levels of investor interest as it navigates the competitive and rapidly changing market landscape. InvestingPro analysis reveals several key challenges, including rapid cash burn and weak profit margins. For detailed insights and additional ProTips about Rivian’s financial health and market position, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Rivian Automotive Inc reported its first-quarter vehicle delivery and production numbers, which exceeded both the company’s guidance and analyst estimates. Rivian delivered 8,640 vehicles, surpassing its own guidance of 8,000 and analyst estimates from Cantor Fitzgerald and Visible Alpha Consensus. Production figures also exceeded expectations, with 14,611 vehicles produced, compared to the company’s guidance of 14,000 and Cantor Fitzgerald’s estimate of 13,750. Despite these achievements, RBC Capital Markets adjusted its outlook on Rivian, reducing the price target from $12 to $10 while maintaining a Sector Perform rating due to anticipated free cash flow losses and liquidity concerns.
Additionally, Rivian is facing challenges from recent auto parts tariffs, which have significantly impacted its stock performance. Analysts from Cantor Fitzgerald maintained a Neutral rating on Rivian, citing the company’s vulnerability due to reliance on imported components. Meanwhile, Canaccord Genuity reaffirmed a Buy rating and a $23 price target for Rivian, highlighting the company’s potential to capitalize on the current market dynamics as other manufacturers scale back their electric vehicle ambitions. Rivian’s financial projections for the year include an expected adjusted EBITDA loss between $1,700 million and $1,900 million, with capital expenditures estimated between $1,600 million and $1,700 million. These recent developments continue to shape investor perspectives on Rivian’s future in the competitive electric vehicle market.
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