Gold prices heading for weekly gains; import tariffs on gold bars?
Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $15.00 price target on Rivian Automotive Inc (NASDAQ:RIVN), currently trading at $11.98, citing a combination of positive partnerships and concerning delivery guidance. According to InvestingPro data, analyst targets range from $7.05 to $21.00, reflecting mixed sentiment in the market.
The investment firm acknowledged Rivian’s advantages from its Amazon (NASDAQ:AMZN) commercial partnership, strategic joint venture with Volkswagen (ETR:VOWG_p), and differentiated product lineup including R1, EDVs, and the upcoming R2 vehicles. While the company maintains strong partnerships, InvestingPro analysis shows challenging financials with a -9.33% gross profit margin and negative EBITDA of $2.91 billion.
Cantor Fitzgerald views the R2 line, expected in the first half of 2026, as a significant catalyst that should drive higher customer demand due to its more competitive price point.
Despite management’s projection that third-quarter deliveries will be the highest of the year, the firm expressed concern about Rivian’s fiscal year 2025 delivery guidance of 40,000-46,000 vehicles, which falls below fiscal year 2024 delivery numbers.
Additional factors supporting the Neutral stance include disappointing gross margin performance, worsening macroeconomic conditions, tariff uncertainty, the removal of the $7,500 EV tax credit, and limited information about Rivian’s autonomy and charging segments, though the company plans an Autonomy/AI investor day in the fourth quarter.
In other recent news, Rivian Automotive Inc reported its second-quarter earnings, revealing revenue of $1.303 billion, which slightly surpassed analyst expectations of $1.290 billion. Despite this revenue beat, the company faced challenges with a significant EBITDA loss of $667 million, which was larger than the consensus expectation of $493 million. Additionally, Rivian’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 various adjustments to their price targets. Bernstein reiterated its Underperform rating, citing increased tariff costs and reduced emission credit revenues, with a price target of $7.05. Mizuho (NYSE:MFG) maintained a Neutral rating but lowered its price target to $12.00, reflecting concerns about EV growth. Wedbush, maintaining an Outperform rating, adjusted its price target to $16.00, noting the benefits from higher average selling prices. Needham reduced its price target to $14.00, maintaining a Buy rating while expressing a more conservative near-term demand outlook. Lastly, JPMorgan lowered its price target to $9.00, citing wider losses, while maintaining an Underweight rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.