Cantor maintains $15 target on Rivian stock, keeps neutral rating

Published 03/04/2025, 13:30
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On Thursday, Cantor Fitzgerald maintained its Neutral rating and $15.00 price target for Rivian Automotive Inc (NASDAQ:RIVN) shares. The decision comes after Rivian announced its first-quarter vehicle delivery and production numbers, which surpassed both the company’s own guidance and analyst estimates. With a market capitalization of $14.1 billion and a current InvestingPro Financial Health Score of 2.17 (FAIR), the company faces both opportunities and challenges in the competitive EV market.

Rivian reported that it had delivered 8,640 vehicles in the first quarter of 2025, marginally exceeding the estimates set by Cantor Fitzgerald and Visible Alpha Consensus, which were 8,113 and 8,217 vehicles respectively. This figure also surpassed Rivian’s own guidance of 8,000 vehicles, yet fell short of the 13,588 vehicles delivered in the same period of the previous year. The company’s trailing twelve-month revenue stands at $4.97 billion, though InvestingPro data reveals concerning gross profit margins of -24.14%.

In terms of production, Rivian achieved a total of 14,611 vehicles in the first quarter, topping Cantor Fitzgerald’s estimate of 13,750 vehicles and the company’s guidance of 14,000 vehicles. This production number marks an increase from the 13,980 vehicles produced in the first quarter of 2024.

Moreover, Rivian has confirmed its full-year 2025 delivery guidance, which ranges between 46,000 and 51,000 vehicles. This reaffirmation comes in the wake of the company’s performance in the previous fiscal year, where it delivered 51,579 vehicles and produced 49,476.

The electric vehicle manufacturer has also reiterated its financial projections for the year, expecting an adjusted EBITDA loss between $1,700 million and $1,900 million, and capital expenditures estimated to be in the range of $1,600 million to $1,700 million. These figures remain consistent with the guidance provided earlier by the company.

In other recent news, Rivian Automotive Inc has been the subject of several notable developments. Canaccord Genuity maintained its Buy rating on Rivian, setting a price target of $23.00, citing the company’s potential to capitalize on the current electric vehicle market dynamics. Meanwhile, Truist Securities reaffirmed a Hold rating with a price target of $14.00, following Rivian’s announcement of a new spin-off, Also, Inc., focused on micromobility solutions with a $105 million investment. Piper Sandler, however, downgraded Rivian’s stock from Overweight to Neutral, adjusting the price target to $13.00, due to uncertainties surrounding growth catalysts for 2025.

Rivian’s strategic move to create Also, Inc. aims to address the demand for small electric vehicles, with plans to launch its first product in Fall 2025. This diversification reflects Rivian’s broader strategy to remain competitive in the evolving automotive landscape. Rivian’s partnership with Volkswagen (ETR:VOWG_p) was also highlighted as a positive step, helping to de-risk its balance sheet and validate strategic decisions. Additionally, Rivian has shown progress in reducing its cost of goods sold per unit over the past year.

Lucid Group (NASDAQ:LCID), another player in the electric vehicle market, is facing challenges with delays in the delivery of its Gravity SUV due to unresolved safety testing issues. The delays have raised concerns about Lucid’s ability to meet production targets, with higher-volume production not expected until mid-2024. These developments underscore the competitive and rapidly changing nature of the electric vehicle industry, as companies like Rivian and Lucid navigate production and market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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