Rivian stock price target raised to $14 at TD Cowen

On Wednesday, TD Cowen analysts increased the price target for Rivian Automotive Inc (NASDAQ:RIVN) shares from $12.70 to $14.00 while maintaining a Hold rating on the stock. The adjustment comes after Rivian reported a strong first quarter, showing notable progress in gross margins. The company succeeded in achieving a positive automotive gross margin, excluding depreciation, amortization, and stock-based compensation (D&A/SBC).

Rivian’s first-quarter performance exceeded expectations, primarily driven by the improved gross margin. However, the outlook for 2025 presented a mixed picture. The company has revised its delivery forecasts downward but confirmed its EBITDA range, even with anticipated lower volume and the impact of tariffs. The guidance provided by Rivian is perceived as conservative by TD Cowen. InvestingPro analysis reveals several key insights about Rivian’s financial health - discover 8 more exclusive ProTips and comprehensive financial metrics with a subscription.

Despite the mixed guidance for 2025, TD Cowen remains fundamentally constructive on Rivian’s prospects. The analysts noted that while they continue to hold a positive view of the company’s long-term potential, they are still looking for a clearer near-term catalyst path before considering an upgrade in the stock’s rating. Recent market performance has been strong, with the stock posting a 34.33% return over the past six months.

The revised price target reflects the analysts’ recognition of Rivian’s Q1 margin improvements and their confidence in the company’s ability to navigate the challenges ahead. While deliveries are expected to be lower, the affirmation of the EBITDA range in the face of these challenges suggests a level of resilience in Rivian’s business model.

In summary, TD Cowen has acknowledged Rivian’s Q1 achievements and has raised the price target on the company’s stock, signaling a cautious optimism for the electric vehicle maker’s financial health and operational efficiency. Rivian’s stock will continue to be monitored by TD Cowen for potential catalysts that could influence future ratings.

In other recent news, Rivian Automotive Inc. reported its first-quarter financial results for fiscal year 2025, showcasing a revenue of $1.24 billion, which surpassed expectations and was attributed to strong demand for its updated product line. The company achieved a positive gross profit for the second consecutive quarter, with a significant year-over-year decrease in the cost of goods sold per unit. Despite these positive financial outcomes, Rivian adjusted its full-year delivery guidance downward to between 40,000 and 46,000 vehicles, citing operational cost reductions and potential tariff impacts as factors. Stifel analysts maintained a Buy rating with a $16 price target, emphasizing the company’s ability to generate gross profit and maintain its EBITDA outlook.

Wedbush Securities adjusted its price target for Rivian from $20 to $18 while keeping an Outperform rating, reflecting confidence in Rivian’s long-term growth despite delivery forecast reductions and upcoming tariff challenges. BofA Securities maintained an Underperform rating with a $10 price target, highlighting Rivian’s better-than-expected financial results, including an adjusted EBITDA loss of $300 million, which was significantly less than anticipated. Rivian’s gross margin improvement was attributed to an increase in regulatory credits and a rise in software and services revenue.

Additionally, Rivian announced plans to host an AI and Autonomy Day in the fall of 2025, aiming to provide insights into its autonomous driving strategy. The company continues to focus on developing its R2 line, with preparations for its launch involving line shutdowns. Despite challenges, Rivian remains committed to strategic initiatives to strengthen its market position and address the evolving trade and economic landscape.

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