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Investing.com - Bernstein has reiterated an Underperform rating on Rivian Automotive Inc (NASDAQ:RIVN), currently trading at $12.15 with a market cap of $14.6 billion, with a price target of $7.05, citing increased tariff costs and fading emission credit revenues. According to InvestingPro data, six analysts have recently revised their earnings estimates downward for the upcoming period.
The electric vehicle manufacturer reported second-quarter earnings that significantly missed consensus estimates, with quarterly EBITDA falling 35% short of analyst projections, according to Bernstein analyst Daniel Roeska. The company’s weak performance is reflected in its -9.3% gross profit margin and -$2.91 billion EBITDA over the last twelve months.
Rivian has subsequently lowered its fiscal year 2025 guidance by approximately 18%, reflecting the challenging market conditions and policy shifts affecting the company’s financial outlook.
Bernstein identified several headwinds facing Rivian, including higher costs from tariffs, the elimination of emission credit revenues, and the upcoming end to electric vehicle purchase incentives expected in October.
While some investors remain optimistic about potential increased revenues from advanced driver-assistance systems and the upcoming R2 vehicle launch next year, Bernstein believes the stock will struggle to perform until the company addresses its ongoing cash outflow issues.
In other recent news, Rivian Automotive Inc reported second-quarter revenue of $1.303 billion, slightly surpassing analyst expectations of $1.290 billion. Despite the revenue beat, the company posted a larger-than-expected EBITDA loss of $667 million, compared to consensus estimates of $493 million. The electric vehicle maker’s vehicle deliveries for the quarter were approximately 10,700 units, marking a 23% year-over-year decline. Analysts have responded to these results with several price target adjustments. Mizuho (NYSE:MFG) adjusted its price target to $12 while maintaining a Neutral rating, citing concerns about electric vehicle growth. Wedbush lowered its target to $16 but kept an Outperform rating, noting the benefit of higher average selling prices. Needham reduced its target to $14, maintaining a Buy rating due to a weaker demand outlook. JPMorgan decreased its target to $9, retaining an Underweight rating, due to wider losses. Goldman Sachs maintained a Neutral rating with a $12 target, attributing the lower EBITDA to reduced regulatory credit revenue and higher vehicle costs.
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