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Rivian Automotive RIVN analysts are cautious on the short-term outlook for the electrical car firm with provide chain issues, after the corporate missed third-quarter income and earnings per share estimates.
The Rivian Analysts:
Truist analyst Jordan Levy maintained a Maintain score on Rivian with a $12 value goal.
Wedbush analyst Daniel Ives maintained an Outperform score with a $20 value goal.
Needham analyst Chris Pierce reiterated a Purchase score and lowered the value goal from $18 to $14.
Piper Sandler analyst Alexander Potter maintained an Chubby score and lowered the value goal from $21 to $19.
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Truist on RIVN: Proof of profitability for Rivian’s R1 car could also be essential to instill confidence within the R2 launch, Levy mentioned in a brand new investor be aware.
“RIVN’s third quarter outcomes have been mired by the corporate’s beforehand reported part scarcity, although a major anticipated 4Q uptick in regulatory credit score gross sales + realization of cost-down from Gen 2 fashions enabled the corporate to reiterate its 4Q optimistic GM (gross margin) goal,” Levy mentioned.
The analyst mentioned Rivian must display constant profitability to assist traders acquire confidence.
Rivian’s tailwind of resolving provide chain points was not a shock to traders, Levy added.
“Whereas we’re incrementally optimistic on the timeline reiteration for R2, we see the latest election outcomes and the incoming administration being an overhang over the whole home EV market in the meanwhile given the uncertainty.”
Wedbush on RIVN: The electrical car firm made progress and noticed sturdy demand within the third quarter, however Ives mentioned in a brand new investor be aware that there’s extra work forward.
Ives mentioned Rivian took two steps ahead however one step again as the provision chain challenges harm the corporate’s plan to ramp up manufacturing.
“Rivian didn’t anticipate such massive provide ramp challenges this quarter, nevertheless, it ought to be effectively sorted over the subsequent few quarters as the corporate continues to be on observe by way of timing the R2 manufacturing launch,” Ives mentioned.
A provide partnership introduced with LG on Thursday and the pending launch of the Volkswagen VWAGY three way partnership are “crucial items” for the way forward for Rivian, Ives added.
“Though we nonetheless stay assured within the long-term Rivian imaginative and prescient, it should take some severe strides for the corporate to regain belief within the short-term imaginative and prescient within the eyes of the Road.”
Needham on RIVN: Scale and margins are bearish speaking factors for the Rivian story, Pierce mentioned in a brand new investor be aware.
“We proceed to view RIVN as a long-term winner within the eventual ICE to EV transition, leaning on its potential to create a model and produce automobiles that drive excessive ranges of buyer ardour and satisfaction,” Pierce mentioned.
The analyst mentioned R2 manufacturing enhancements are the important thing focus for 2025 with R2 manufacturing set to start within the first half of 2026. Car profitability for the R2 is predicted to be reached quicker than the R1 and shall be a key issue to observe, the analyst added.
The analyst additionally highlighted a three way partnership with Volkswagen anticipated to shut within the fourth quarter.
“RIVN’s stability sheet has been considerably strengthened the Volkswagen announcement, eradicating any further fairness wants vs our prior mannequin, permitting for a better stage of investor persistence.”
Piper Sandler on RIVN: The third-quarter outcomes and commentary had no surprises, resulting in growing significance for the three way partnership with Volkswagen closing as the subsequent catalyst, Potter mentioned in a brand new investor be aware.
“The inventory has faltered not too long ago, partially because of slower manufacturing, and partially (in our view) as a result of a JV with Volkswagen has but to be finalized,” Potter mentioned.
The analyst mentioned the three way partnership phrases might proceed to be a narrative within the coming weeks and will see Rivian’s valuation broaden.
“We’ll evaluation our mannequin as soon as the JV phrases are introduced.”
RIVN Worth Motion: Rivian inventory is down 0.48% to $10.00 on Friday, versus a 52-week buying and selling vary of $8.26 to $24.62. Rivian inventory is down 51% year-to-date in 2024.
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