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On Wednesday, UBS analyst Joseph Spak increased the price target for Rivian Automotive Inc (NASDAQ:RIVN) to $13.00, up from the previous $12.00, while maintaining a Neutral stock rating. With the stock currently trading at $13.1 and a market capitalization of $15.5 billion, Spak noted several positive developments in the company’s first quarter of 2025, highlighting that Rivian achieved gross profit and reached a significant milestone by securing a $1 billion equity investment from Volkswagen (ETR:VOWG_p) before June 2025. This move is expected to ease capital concerns for the electric vehicle manufacturer. InvestingPro analysis reveals 10+ additional investment insights for Rivian, including detailed cash flow and profitability metrics.
Rivian also reported its lowest cost of goods sold (COGS) per unit to date, with a quarter-over-quarter improvement of approximately $3,300. While the company maintains a strong liquidity position with a current ratio of 4.7, its gross profit margin remains challenging at -24.14%. Spak pointed out that the COGS improvement was partly due to a product mix in the first quarter that included fewer vans. Challenges remain, as the company has reduced its delivery outlook for the year, influenced by the general sentiment towards electric vehicles and potential reductions in promotions to balance the additional tariff costs expected in the second half of 2025.
The analyst’s report suggests that Rivian’s stock performance is largely dependent on the success of its upcoming R2 model. While the launch is currently on track, the stock may face a period of stagnation until the company hosts an AI day in the fall and approaches the R2 launch in the first half of 2026.
The revised price target of $13 is based on slightly adjusted forecasts, taking into account the recent financial and operational milestones achieved by Rivian, as well as the challenges it faces in the near term. The investment from Volkswagen and the improvements in COGS are seen as key factors that could influence the company’s financial stability and future performance.
In other recent news, Rivian Automotive Inc. reported a strong first quarter for fiscal year 2025, with revenue reaching $1.24 billion, surpassing expectations of $997.7 million. The company achieved a positive gross profit for the second consecutive quarter, driven by a substantial year-over-year decrease in the cost of goods sold per unit and higher average selling prices. Despite the positive financial performance, Rivian revised its full-year delivery guidance downward to 40,000-46,000 vehicles, citing challenging market conditions and anticipated tariff impacts. Analysts have responded with varied assessments: TD Cowen raised Rivian’s stock price target to $14 while maintaining a Hold rating, recognizing improvements in gross margins, whereas Wedbush Securities lowered its price target from $20 to $18 but kept an Outperform rating, acknowledging the company’s robust revenue performance. Stifel maintained a Buy rating with a $16 target, noting a positive long-term view despite mixed near-term indicators. BofA Securities continued to rate Rivian as Underperform, keeping a $10 target, due to concerns over delivery declines despite better-than-expected financial results. Rivian’s efforts to enhance its product offerings include the development of the R2 prototype, set to launch in 2026, and plans for an AI and Autonomy Day to showcase advancements in autonomous driving technology.
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