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Investing.com - RBC Capital maintained its Sector Perform rating and $14.00 price target on Rivian Automotive Inc (NASDAQ:RIVN) in a research note released Wednesday. The stock is currently trading at $18.02, significantly above the analyst target, with InvestingPro data suggesting the stock is trading above its Fair Value.
The firm cited ongoing liquidity concerns for the electric vehicle manufacturer, noting that Rivian currently holds $7.1 billion in cash and short-term investments on its balance sheet. This aligns with InvestingPro data showing Rivian holds more cash than debt with a healthy current ratio of 2.71. The company expects an additional $2.5 billion in funding from its joint venture with Volkswagen, with $1 billion contingent on completing technological milestones, specifically winter-testing of prototypes using E/E architecture.
Rivian management appears confident in securing a $6.6 billion project-based finance loan from the Department of Energy, which depends on vertical construction of the company’s Georgia site beginning in 2026. However, RBC Capital highlighted that Visible Alpha consensus shows cumulative negative free cash flow of $10.7 billion from the second half of 2025 through 2030.
The research note warned that if Rivian encounters obstacles in receiving DOE reimbursement and fails to reach the technological milestones needed to obtain the $1 billion from Volkswagen in 2026, the company might need additional financing as early as 2027. Want deeper insights into Rivian’s financial health? InvestingPro offers comprehensive analysis with 12 additional ProTips and detailed financial metrics in the Pro Research Report, helping investors navigate Rivian’s volatile stock movements.
RBC Capital also pointed to upcoming debt maturities as a concern, with Rivian facing payments of $1.5 billion in 2029, $1.725 billion in 2030, and $1.25 billion in 2031, adding that investor focus will remain on gross profit improvements. This concern is validated by InvestingPro data showing Rivian’s weak gross profit margin of just 3.32% over the last twelve months, though the company has seen strong stock performance with a 70.32% return over the past year.
In other recent news, Rivian Automotive reported its third-quarter 2025 earnings, revealing a narrower-than-expected loss per share of -$0.65, surpassing the forecast of -$0.74. The company’s revenue also exceeded expectations, reaching $1.6 billion compared to the anticipated $1.52 billion. Alongside these financial results, Rivian announced a $4.6 billion pay package for its CEO, contingent on achieving certain benchmarks over the next decade. DA Davidson raised its price target for Rivian to $15 from $13, maintaining a Neutral rating and acknowledging the continued progress with the R2 vehicle. Cantor Fitzgerald also kept a Neutral rating with a $15 price target, highlighting Rivian’s strategic partnerships and diverse product offerings. These developments indicate the company’s ongoing efforts in the electric vehicle market.
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