Electric vehicle company Rivian Automotive
The Rivian Analysts:
- Needham analyst Chris Pierce reiterated a Buy rating and lowered the price target from $20 to $18.
- Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating and $19 price target.
- Wedbush analyst Daniel Ives maintained an Overweight rating and $20 price target.
- RBC Capital analyst Tom Narayan maintained a Neutral rating and $15 price target.
- Truist analyst Jordan Levy maintained a Hold rating and $16 price target.
- Piper Sandler analyst Alexander Potter reiterated an Overweight rating and $21 price target.
"We continue to see RIVN as a long-term winner in the ICE to EV transition," Pierce said.
Pierce highlights strong R1 owner satisfaction, a partnership with Volkswagen
The analyst said the launch of the R2 and R3 vehicles will expand Rivian's addressable market and lead to higher unit growth.
"RIVN's balance sheet has been significantly strengthened post the Volkswagen announcement, removing any additional equity needs vs. our prior model."
Cantor: Reiterated guidance for financials and production along with new commentary on the Volkswagen joint venture were keys in the earnings report for Sheppard.
"As a result of this agreement, we expect Rivian to be able to extend its cash runway, achieve additional cost savings, and to improve its margin profile over the medium to long term," Sheppard said.
The analyst also highlighted Rivian management commentary that Amazon is committed to fulfilling its agreement of up to 100,000 electric delivery vans.
Sheppard said Amazon represented around 22% of total revenue in fiscal 2022, around 18% in fiscal 2023 and could represent around 23% in fiscal 2024.
"We continue to believe that RIVN benefits from a differentiated product offering, an important commercial partnership with Amazon, a strategic joint venture with Volkswagen, and a proprietary charging network."
Wedbush: The electric vehicle company is "powering through some speed bumps," Ives said in a new investor note.
The analyst said Rivian beat revenue expectations but investors may be concerned by a miss on adjusted EBITDA versus expectations.
"While the Street will initially process the margin performance of this quarter as a headwind, the company maintained its full year guidance which we view as a step in the right direction given the investments made throughout the year," Ives said.
For Rivian, it is about "setting up the stage" for the launch of its Gen 2 R1 vehicle production and preparing for the R2 launch, Ives added.
The analyst said the Volkswagen joint venture is "a key move for security" and the future of Rivian as it focuses on profitability and production.
"It now feels that the tires are hitting the road for the automaker with a clear vision ahead."
RBC Capital: Second-quarter financials were consistent with expectations, Narayan said.
"We expect a relatively neutral stock reaction," Narayan said. The analyst said an update on production was a key with a focus on profitability going forward.
"Positive gross profit by Q4/24 would be a major proof point for management, especially considering that the company continues to lose $30k+ per vehicle even through Q2."
Truist: Reaffirmed guidance and a focus on profitability were keys in the quarter commentary that investors will focus on, Levy said.
"While the quarter included a fair amount of noise from the shutdown in financial results, we believe investors will be looking past the print, and will be focused on mgmt commentary as the company looks to achieve positive GMs (gross margins)," Levy said.
The analyst said investors will be looking for updates from the company after no new announcements were made Tuesday.
Piper Sandler: The second quarter for Rivian was a "non-event," Potter writes in a new investor note.
"After examining Q2 results and listening to the earnings call, we don't see how anyone could've grown more bearish (or more bullish, for that matter," Potter said.
The analyst said Rivian's message has not changed since its investor day. "We'll know more by Q4."
RIVN Price Action: Rivian shares are down 4% to $14.25 on Wednesday versus a 52-week trading range of $8.26 to $25.73. Rivian stock is down 39% year-to-date in 2024.
