Mizuho lowers Rivian stock price target to $12 on EV growth concerns

Published 06/08/2025, 12:44
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Investing.com - Mizuho (NYSE:MFG) has reduced its price target on Rivian Automotive Inc (NASDAQ:RIVN) to $12.00 from $13.00 while maintaining a Neutral rating on the electric vehicle maker’s stock. The company maintains a strong liquidity position with a current ratio of 3.73x and more cash than debt on its balance sheet, according to InvestingPro data.

The price target adjustment follows Rivian’s June quarter report showing in-line revenue with vehicle deliveries of approximately 10,700 units, representing a 23% year-over-year decline ahead of new model launches planned for the second half of 2025. The company’s gross profit margin remains challenging at -9.33%, reflecting the ongoing challenges in production scaling.

Rivian has reiterated its 2025 delivery target of approximately 43,000 vehicles, which represents a 17% year-over-year decrease and aligns with consensus estimates of 42,900 units, as the company prepares to launch its new model year 2026 R1 vehicles. Want deeper insights? InvestingPro offers exclusive financial health scores and 8 additional ProTips for Rivian.

The company expects the third quarter to be its strongest of the year, coming ahead of the end of IRA tax credit availability on September 30, while its upcoming R2 vehicle is scheduled to start production in the first half of 2026 with 50% lower bill of materials cost compared to the R1.

Mizuho estimates Rivian’s 2026 deliveries will reach 68,000 units, representing 58% year-over-year growth, though this falls below consensus expectations of 75,300 vehicles, with the firm citing challenged electric vehicle growth in the U.S. market for 2025.

In other recent news, Rivian Automotive Inc. reported its second-quarter revenue of $1.303 billion, slightly surpassing analyst expectations of $1.290 billion. Despite stable revenue figures, the company posted a larger-than-expected loss per share of $0.97, missing the forecasted loss of $0.66. The company’s software and services segment showed growth, reaching $376 million, up from $318 million in the previous period. Analysts have responded to these results with varying adjustments to Rivian’s stock price targets. Wedbush lowered its target to $16, maintaining an Outperform rating, while Needham reduced its target to $14, citing a more conservative demand outlook. JPMorgan also decreased its target to $9 due to wider-than-expected losses, maintaining an Underweight rating. Goldman Sachs kept its Neutral rating with a $12 target, noting Rivian’s lower-than-expected EBITDA attributed to reduced regulatory credit revenue and higher vehicle costs. These developments reflect the mixed reactions from analysts regarding Rivian’s financial performance.

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