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Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The ABR is the calculated average of the actual recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock. Analysts expect Rivian’s revenue to rise 7% to $4.77 billion this year, as it delivers slightly more vehicles to offset its flat production rates.
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But it’s still aiming to achieve a positive gross margin per vehicle by the fourth quarter of this year as economies of scale kick in. For now, Volkswagen will start using Rivian’s existing electric architecture and software platform to build new EVs. But by the “second half of the decade,” both companies plan to launch new vehicles created from the JV’s co-developed technologies. A recent rumor also suggested Rivian was in early talks with Volkswagen to expand their software partnership into a manufacturing one, but Rivian refuted those claims. Based on short-term price targets offered by 22 analysts, the average price target for Rivian Automotive comes to $18.50. The average price target represents an increase of 38.16% from the last closing price of $13.39.
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- With an enterprise value of $12.6 billion, it still looks fundamentally cheap at just 3 times this year’s sales.
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- The electric vehicle maker, which is still losing thousands of dollars for every vehicle it makes, has be…
- It will also invest $1 billion in the JV upon its inception and provide it with a $1 billion loan in 2026.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. If Rivian can get its act together, ramp up its production, and avoid more delays and disappointments, it could fetch a much higher valuation in the future. Rivian Automotive (RIVN 2.65%) has been a tough stock to own since its initial public offering (IPO). The electric vehicle (EV) maker went public at $78 per share on Nov. 10, 2021, and set a record high of $172.01 less than a week later, but currently trades at about $15. In most cases the # of brokers listed above is less than the # of brokerage firms that have a recommendation on the stock. That is because some firms prohibit Zacks from displaying detailed information on their recommendations such as in the upgrade/downgrade table.
But on June 25, Rivian announced a new joint venture (JV) with Volkswagen (VWAP.Y -0.34%) to co-develop new EV technologies. Many bullish investors praised the partnership as a game-changing move for Rivian, and its stock has soared more than 30% since its opening price that day. Electric vehicle company Rivian Automotive RIVN draws mixed reactions from analysts over its partnerships and focus on profitability after reporting second-quarter financial results. Its low debt-to-equity ratio of 0.8 also gives it some breathing room to take on more leverage. Electric-vehicle maker Rivian reports second-quarter earnings Tuesday evening.
Rivian Automotive, Inc. (RIVN)
Shares are up more than 40% since Volkswagen agreed in June to invest billions of dollars in Rivian. According to 23 analysts, the average rating for RIVN stock is “Buy.” The 12-month stock price forecast is $18.59, which is an increase of 35.30% from the latest price. That big investment isn’t too surprising given Volkswagen remains an underdog in the EV market.
Its sales of battery-powered EVs rose nearly 35% to more than 771,000 units in 2023, but that was only equivalent to 8% of the global EV market and less than half of Tesla’s 1.81 million deliveries. Therefore, it makes sense for Volkswagen to invest in smaller EV makers like Rivian to accelerate that higher-growth business. Rivian and Volkswagen’s joint venture will be equally owned and controlled by both companies.
Rivian’s deliveries produced 24,337 vehicles in 2022 and 57,232 vehicles in 2023. It ramped up its production as it overcame its supply chain constraints and installed its cheaper first-party Enduro drive unit into more of its vehicles. RJ Scaringe, Rivian CEO, joins ‘Closing Bell Overtime’ to talk quarterly results, rolling out Gen 2 vehicles, affordability and more.
But from 2023 to 2026, they predict the automaker’s revenue will grow at a compound annual growth rate (CAGR) of 29% to $9.61 billion as it ramps up its production and rolls out its new vehicles. In late June, Rivian partnered with the German automaker to co-develop new EV architecture and software through a new joint venture. Rivian expects its production upgrades to drive it to a “modest gross profit” by the fourth quarter of 2024. It also aims to narrow its adjusted EBITDA loss from $3.98 in 2023 to $2.7 billion in 2024, even as its full-year capital expenditures rise 17% to $1.2 billion. That was the same outlook it provided in its first-quarter report in May.
Rivian Automotive’s (RIVN 2.69%) stock tumbled 7% on Aug. 7 after it posted a mixed second-quarter report. The electric vehicle (EV) maker’s revenue rose 3% year over year to $1.16 billion and exceeded analysts’ expectations by $20 million. Rivian ended the first quarter of 2024 with $9.05 billion in total liquidity, but analysts expect it to post a net loss of $4.69 billion for the full year. Therefore, Volkswagen’s big investment should buy it a lot more time to achieve its long-term goals. Rivian CEO RJ Scaringe said the partnership would secure its “capital needs for substantial growth.”
Rivian Automotive maintained its production forecast for the year on Tuesday and said it lost more per electric car delivered than analysts had expected. Rivian Automotive beat Wall Street’s top- and bottom-line expectations for the second quarter. The electric vehicle maker, which is still losing thousands of dollars for every vehicle it makes, has be…
Rivian is still a tiny underdog compared to Tesla, which produced 1.85 million vehicles in 2023. But it’s faring better than smaller EV makers like Lucid, which only produced 8,428 vehicles in 2023. For the full year, it expects its production to flatline at about 57,000 vehicles.
In comparison, Tesla and Lucid trade at 5.9 and 6.9 times this year’s sales, respectively. Therefore, Rivian looks undervalued relative to its growth potential — and it could still be a great EV play for patient long-term investors. The bulls believe Rivian can successfully scale up its business, but the bears believe it will burn through too much cash before that happens. However, its new partnership with Volkswagen should allay some of those concerns.
Analysts believe Rivian can increase its revenue at a compound annual growth rate (CAGR) of 34% from 2023 to 2026 as it rolls out its new vehicles. With an enterprise value of $12.6 billion, it still looks fundamentally cheap at just 3 times this year’s sales. Tesla, which is growing at a much slower rate, trades at 8 times this year’s sales.
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Rivian Automotive RIVN will likely share updates on vehicle production guidance, a Volkswagen joint venture and R2 reservations when the company reports second-quarter financial results after market c…