Wall Street was upbeat about
The maker of electric trucks posted revenue of $364 million in the quarter, beating expectations for $336 million. The company’s adjusted per-share loss was $1.62 vs. projections for a loss of $1.61. Perhaps most importantly for investors, Rivian (ticker:
“Production is on course and reservations gained further steam, which was the key for the Street despite a widening loss on the bottom-line,” wrote Wedbush analyst Daniel Ives. He reiterated an Outperform rating on the stock, and raised his price target to $45 from $40, adding that he believes the company’s investment in a Georgia production facility will be a long-term positive for keeping up production.
Mizuho Securities analyst Vijay Rakesh agreed, writing that ramping production and deliveries was “key” for the company’s performance.
“Near-term, we continue to watch their roadmap execution and production ramp,” he added. He maintained a Buy rating, but lowered his price target to $65 from $70 to adjust for broader concerns about consumer demand in a slowing macroeconomic environment.
RBC Capital Markets also lowered its price target. Analyst Joseph Spak trimmed his target to $75 from $77 after the company lowered guidance for third-quarter Ebitda, or earnings before interest, taxes, depreciation, and amortization. Rivian is now expecting an annual Ebitda loss of $5.45 billion, reflecting the impacts of inflation, supply-chain challenges, and costs tied to scaling up. Previously, Rivian was forecasting an Ebitda loss of $4.75 billion.
Even so, Spak maintained an Outperform rating, writing that the second-quarter report contained “a number of encouraging data points” about the company’s long-term performance, including margin improvement and a positive update about the company’s electric delivery van partnership with
Rivian shares were down 0.1% to $38.93 on Friday. The stock gained 4.1% on Thursday, but has fallen 62% this year.
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