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On Wednesday, Stifel analysts maintained a Buy rating on Rivian Automotive Inc (NASDAQ:RIVN) with a steady price target of $16.00, following the company’s first-quarter results and future outlook for 2025. Currently trading at $13.24, Rivian’s stock sits within the broader analyst target range of $6.10 to $23.00. According to InvestingPro data, the stock has shown strong momentum with a 34% gain over the past six months. Stifel’s analysis acknowledges a combination of positive and negative factors impacting Rivian’s performance and projections.
Rivian’s first quarter of 2025 showed several encouraging signs, including a substantial year-over-year decrease in the cost of goods sold (COGS) per unit and gross profit per vehicle exceeding Stifel’s expectations. This marks the second consecutive quarter that Rivian has posted a gross profit. However, InvestingPro analysis reveals that the company still faces challenges with weak gross profit margins, currently at -24.14%, and continues to burn through cash with negative free cash flow of $2.86 billion in the last twelve months. The company also maintained its projection of achieving a modest gross profit for the full year of 2025. Additionally, Rivian reaffirmed its adjusted EBITDA outlook, signaling resilience amidst challenging conditions.
However, not all indicators were as promising. Rivian adjusted its full-year 2025 delivery guidance downwards by approximately 11% at the midpoint, now expecting to deliver between 40,000 and 46,000 units. Furthermore, the company anticipates a 12% increase in capital expenditures at the midpoint, attributing the rise to anticipated tariff impacts.
Despite these setbacks, Stifel views the overall picture and future outlook for Rivian as neutral in the near term but continues to support a positive long-term view for the electric vehicle manufacturer. The analyst’s commentary highlights the company’s ability to generate a gross profit and maintain its EBITDA outlook as key factors underpinning this optimism.
Rivian, known for its electric trucks and SUVs, has been navigating a complex automotive landscape marked by supply chain challenges and increasing competition in the electric vehicle sector. The company’s efforts to prepare for the launch of its R2 line, which involved line shutdowns, are among the strategic moves aimed at strengthening its market position in the coming years. With revenue growth of 12.09% and a beta of 1.87, Rivian shows both potential and volatility. For deeper insights into Rivian’s financial health and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Rivian Automotive Inc. reported impressive financial results for the first quarter of 2025, with revenue reaching $1.24 billion, surpassing expectations of $997.7 million. The company’s earnings per share (EPS) were better than anticipated at -$0.41, compared to a forecast of -$0.76. Despite these strong financial results, Rivian has revised its full-year delivery guidance to between 40,000 and 46,000 vehicles, citing the need to manage operational costs and potential tariff impacts. Analyst firm Wedbush maintained an Outperform rating on Rivian, although it lowered the price target from $20 to $18, reflecting a cautious yet optimistic outlook. Conversely, BofA Securities retained an Underperform rating with a $10 price target, highlighting concerns despite Rivian’s better-than-expected financial performance. Rivian also reported a gross margin of 17%, aided by increased regulatory credits and software revenue. Additionally, the company announced plans to host an AI and Autonomy Day in the fall of 2025, focusing on advancements in autonomous driving technology.
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