Rivian stock price target raised to $13 by DA Davidson

On Monday, DA Davidson’s analyst Michael Shilsky adjusted the price target for Rivian Automotive Inc (NASDAQ:RIVN) to $13.00, up from the previous $13.00, while reiterating a Neutral rating on the stock. According to InvestingPro data, analyst targets for Rivian range from $6.10 to $23.00, with the stock currently trading at $12.97. The company’s market capitalization stands at $14.3 billion, with five analysts recently revising their earnings expectations downward. The revision follows Rivian’s fourth-quarter earnings of 2024, which indicated a potentially stagnant year for vehicle demand. The company reported revenue of $4.97 billion in the last twelve months, with a revenue growth of 12.09%. Despite this, Rivian is increasing its marketing efforts to ensure its brand remains prominent ahead of the R2 model launch and to take advantage of current opportunities with its R1S and R1T models.

Rivian is also starting to see benefits from its partnership with Volkswagen (ETR:VOWG_p) and is exploring multiple non-vehicle revenue streams. Shilsky noted that while the company’s strategy seems promising, Rivian is currently at a precarious point in early 2025. The analyst’s stance remains cautious, opting to observe Rivian’s progress from the sidelines for the time being.

The company’s efforts to maintain brand visibility and explore various revenue avenues come at a crucial time when the automotive industry is highly competitive, especially in the electric vehicle sector. With the upcoming launch of the R2 and the ongoing sales of R1S and R1T models, Rivian is working to secure its position in the market.

The partnership with Volkswagen is particularly significant as it opens up opportunities for collaboration and potential access to a broader market. Rivian’s exploration of non-vehicle revenue streams also suggests a strategic move to diversify its business model and create additional sources of income.

As the electric vehicle market continues to grow, Rivian’s strategies and the resulting financial performance will be closely watched by investors and industry observers alike. With the new price target set by DA Davidson, market participants will be keen to see how Rivian navigates the challenges and opportunities that lie ahead. For deeper insights into Rivian’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed financial metrics in the Pro Research Report.

In other recent news, Rivian Automotive Inc has reported its fourth-quarter revenue, surpassing expectations with $1.7 billion compared to the predicted $1.2 billion by Benchmark and the $1.5 billion consensus. The company achieved a gross profit of $170 million, reflecting a 10% margin. Following these results, Needham raised its price target for Rivian to $17, maintaining a Buy rating, while Mizuho (NYSE:MFG) increased its price target to $13, keeping a Neutral rating. Cantor Fitzgerald, however, downgraded Rivian from Overweight to Neutral, adjusting its price target to $15 from $13.

BofA Securities downgraded Rivian’s stock rating from Neutral to Underperform, lowering the price target to $10, citing concerns about future performance and market conditions. Despite this, Benchmark maintains a Buy rating with an $18 price target, expressing optimism about Rivian’s operational efficiencies and the upcoming R2 model. Rivian’s guidance for 2025 anticipates an adjusted EBITDA loss between $1.7 billion and $1.9 billion, with capital expenditures ranging from $1.6 billion to $1.7 billion. The company plans to expand its service footprint by adding 30 new service locations in 2025, bringing the total to 101.

Rivian’s R2 model is on schedule to start production in the first half of 2026, with Mizuho forecasting deliveries to reach approximately 74,500 units that year. Cantor Fitzgerald revised its revenue projection for 2025 to approximately $5.594 billion, up from $5.119 billion, despite lowering delivery expectations. Rivian’s partnership with Volkswagen and its strong balance sheet are highlighted as contributing factors to its financial position and future prospects.

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