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On Wednesday, Cantor Fitzgerald maintained a Neutral rating on Rivian Automotive Inc (NASDAQ:RIVN) with a steady price target of $15.00. According to InvestingPro data, the stock has shown strong momentum with a 34% gain over the past six months, despite trading near $12.83, well below its 52-week high of $18.86. The decision comes as Rivian announced a decrease in its vehicle delivery guidance for FY25, adjusting the forecast to 40,000 - 46,000 vehicles, which includes Electric Delivery Van (EDV) deliveries. This revision is a decrease from the previously anticipated range of 46,000 - 51,000 vehicles. The company’s financial metrics reveal significant challenges, with a negative gross profit margin of 24% and rapidly depleting cash reserves, as highlighted in InvestingPro’s analysis.
The lowered guidance was attributed to Rivian’s current perspective on changing trade regulations, policies, tariffs, and their potential effects on consumer sentiment and demand. In FY24, Rivian reported delivering 51,579 vehicles and a production count of 49,476.
In addition to revising its delivery outlook, Rivian is increasing its capital expenditure (Capex) forecast for FY25 to between $1,800 million and $1,900 million. This is an uptick from the previous Capex guidance, which ranged from $1,600 million to $1,700 million.
Despite these changes, the company has confirmed its previously projected adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for FY25, which is expected to be in the range of negative $1,700 million to negative $1,900 million. This reaffirmation suggests that Rivian has accounted for the revised delivery and Capex estimates in its financial planning for the year. For deeper insights into Rivian’s financial health and growth prospects, including 8 additional exclusive ProTips and comprehensive valuation analysis, investors can access the full research report on InvestingPro.
In other recent news, Rivian Automotive Inc reported a strong first-quarter performance for 2025, with its revenue reaching $1.24 billion, surpassing expectations from both Wedbush and BofA Securities. The company also achieved a notable gross margin of 17%, significantly exceeding BofA’s projected -8% margin. However, Rivian has revised its full-year 2025 delivery guidance downward, with expectations now set between 40,000 and 46,000 units. Analysts from UBS, TD Cowen, and Stifel highlighted Rivian’s improved cost of goods sold and gross margins, while acknowledging challenges such as reduced delivery forecasts and anticipated tariff impacts.
Rivian secured a $1 billion equity investment from Volkswagen (ETR:VOWG_p), which is expected to alleviate capital concerns. Despite the mixed outlook, several analyst firms adjusted their price targets for Rivian, with UBS raising it to $13, TD Cowen to $14, and Stifel maintaining a $16 target. Wedbush reduced its price target to $18 but maintained an Outperform rating, citing confidence in Rivian’s long-term growth prospects. Meanwhile, BofA Securities kept an Underperform rating with a $10 target, noting a cautious outlook despite the company’s better-than-expected financial results. Rivian’s ongoing initiatives, including an upcoming AI and Autonomy Day, are anticipated to provide further insights into its strategic direction.
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