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On Monday, BNP Paribas (OTC:BNPQY) Exane analyst James Picariello increased the price target on Rivian Automotive Inc (NASDAQ:RIVN) to $20.00 from $18.00 and maintained an Outperform rating on the stock. Currently trading at $15.77, Rivian has seen analyst targets ranging from $7.05 to $23.00, with 10 analysts recently revising earnings estimates upward according to InvestingPro. Picariello highlighted Rivian’s gross profit improvement and its ability to navigate the dynamic tariffs environment effectively.
The analyst praised Rivian’s strategy with the R1, noting the company’s discipline in not pursuing volume sales at the expense of average selling price (ASP). While InvestingPro data shows current gross profit margins at -9.33%, the company’s focus on ASP optimization could improve this metric. This approach, according to Picariello, strengthens Rivian’s position for the anticipated launch of the R2 model in the first quarter of 2026, which is expected to benefit from political support contrasting with the scrutiny faced by competitors like Tesla (NASDAQ:TSLA).
Picariello expressed confidence in Rivian’s clear pathway to sustainable free cash flow (FCF) and growing likelihood of accessing the $6.6 billion Department of Energy (DoE) loan. According to InvestingPro, the company maintains a strong liquidity position with a current ratio of 3.73 and holds more cash than debt on its balance sheet. This funding is seen as pivotal for fully supporting the Georgia manufacturing plant’s operations.
Rivian’s financial strategy, as noted by the analyst, includes leveraging its liquidity sources, which encompass partnerships with Volkswagen (ETR:VOWG_p) and the DoE loan. These resources are expected to provide the necessary capital for the company’s expansion and operations.
The analyst’s comments suggest a positive outlook for Rivian’s financial health and market strategy, with an emphasis on the company’s prudent ASP management and upcoming product launches. The price target adjustment reflects a growing analyst confidence in Rivian’s future performance and its capacity to sustain profitability in the evolving electric vehicle market.
In other recent news, Rivian Automotive Inc has seen several key developments. RBC Capital Markets has raised its price target for Rivian to $14, citing a revised revenue forecast and an increased expected EV/Sales multiple. Despite lowering its 2025 delivery guidance to 40,000 to 46,000 vehicles, Rivian has increased its projected gross profit to $301 million, largely due to anticipated regulatory credits. The company has also updated its capital expenditure guidance to between $1.8 billion and $1.9 billion to develop the R2 platform, expected to launch in 2026. Concerns remain about potential delays in receiving a $6.6 billion Department of Energy loan and the impact of tariff uncertainties.
Cantor Fitzgerald maintains an Overweight rating on Rivian with a $15 price target, acknowledging the company’s strategic partnerships with Amazon (NASDAQ:AMZN) and Volkswagen. However, they express caution over revised delivery guidance and macroeconomic challenges. Stifel analysts have increased Rivian’s price target to $18, maintaining a Buy rating, and are optimistic about Rivian’s progress toward achieving positive gross profit and launching the R2 model. They emphasize Rivian’s strong liquidity position, supported by investments from Volkswagen and a Department of Energy loan, which are expected to fund the expansion of the midsize platform in Georgia. These developments highlight Rivian’s strategic moves and the challenges it faces in a competitive EV landscape.
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