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On Thursday, CFRA analyst Garrett Nelson increased the price target for Rivian Automotive Inc (NASDAQ:RIVN) to $10.00, up from the previous $8.00, while keeping a Sell rating on the stock. Currently trading at $13.61, Rivian’s stock has shown significant volatility, with InvestingPro data revealing a 52-week range of $8.26 to $18.86. Nelson cited an adjustment to the 12-month target to align with the electric vehicle (EV) peer average. He also revised the 2025 adjusted earnings per share (EPS) estimate to a loss of $2.75 from the prior estimate of a $3.30 loss and introduced a 2026 estimate projecting a loss of $1.50 per share.
Rivian’s fourth-quarter adjusted EPS came in at a loss of $0.46, surpassing the consensus estimate of a $0.64 loss. This outperformance was attributed to sales that exceeded expectations, with revenue climbing 32% to $1.73 billion, a figure $300 million above the consensus. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.09, though it continues to burn through cash rapidly. Despite the strong sales, Rivian provided full-year adjusted EBITDA guidance ranging from a loss of $1.7 billion to $1.9 billion, which falls short of the current consensus projection of a $1.69 billion loss.
The company’s vehicle sales guidance for the year, projecting 46,000 to 51,000 units, suggests a potential year-over-year decrease from the 51,579 units delivered in 2024. Rivian’s fourth-quarter financials revealed a notable 28.0% gross margin on the $214 million generated from Software (ETR:SOWGn) & Services revenue, contributing to an overall gross margin of 9.8% for the quarter.
Nelson reiterated the Sell rating, referencing Rivian’s 35% stock increase since the third-quarter earnings release, the less optimistic 2025 guidance, and concerns over the risks associated with the potential retraction of the $6.6 billion Energy Department loan that was granted late in the Biden administration. For deeper insights into Rivian’s financial health and growth prospects, access the comprehensive Pro Research Report, along with 10+ exclusive ProTips and advanced metrics available on InvestingPro.
In other recent news, Rivian Automotive Inc. announced its fourth-quarter 2024 earnings, revealing a slight miss in earnings per share (EPS) but a notable revenue beat. The company’s EPS was recorded at -$0.70, narrowly missing the forecast of -$0.69, while revenue reached $1.73 billion, surpassing the expected $1.35 billion. Rivian achieved a positive gross margin for the first time in Q4 2024, a significant milestone for the company. The automotive segment generated $1.5 billion in revenue, contributing a gross profit of $110 million. Additionally, the software and services segment brought in $214 million in revenue, with a 28% gross margin. Despite the revenue success, Rivian’s stock experienced a drop during regular trading hours. The company anticipates a modest gross profit for the full year 2025 and has plans to launch its R2 mid-sized platform in the first half of 2026. Rivian’s partnership with Volkswagen (ETR:VOWG_p) Group is expected to generate approximately $2 billion in revenue over the next four years.
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