Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com - Needham has reduced its price target on Rivian Automotive Inc (NASDAQ:RIVN) to $14 from $16 while maintaining a Buy rating on the electric vehicle maker following its second-quarter results. Currently trading at $12.15, Rivian’s stock sits between analysts’ targets ranging from $7.05 to $21, with InvestingPro data showing the company holds more cash than debt on its balance sheet.
The price target adjustment reflects a more conservative near-term demand outlook and widened 2025 adjusted EBITDA loss guidance compared to previous forecasts, according to the research firm.
Despite acknowledging current macroeconomic and policy headwinds affecting the company, Needham continues to view Rivian as a structurally advantaged, cash-rich EV pure-play with a differentiated brand and vertical integration.
The firm highlighted Rivian’s significantly improved cost structure on the upcoming R2 platform, which it believes positions the company for accelerated margin expansion and volume growth once the R2 launches in the first half of 2026.
Needham’s $14 price target represents 15 times enterprise value to the firm’s fiscal year 2028 estimated adjusted EBITDA, discounted back to present value.
In other recent news, Rivian Automotive Inc. reported its second-quarter earnings, revealing revenue of $1.3 billion, which exceeded some analyst estimates but was in line with others. However, the company faced a larger-than-expected EBITDA loss of $667 million, surpassing the consensus expectation of $493 million. This wider loss was attributed to reduced regulatory credit revenue and higher vehicle costs. Despite the revenue stability, Rivian posted a significant earnings per share (EPS) loss of $0.97, missing the forecasted loss of $0.66.
JPMorgan responded by lowering its price target for Rivian to $9.00 from $10.00, maintaining an Underweight rating due to the company’s wider losses. Meanwhile, Goldman Sachs maintained its Neutral rating on Rivian, keeping a price target of $12.00. These ratings reflect analysts’ cautious stance amid the financial results. The recent developments indicate Rivian’s ongoing challenges in managing costs while maintaining revenue levels.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.