Rivian Is Finally Starting To Turn The Corner, Analyst Says Ahead Of Q2 Results

Electric vehicle startup Rivian Automotive Inc. RIVN is all set to release its second-quarter earnings report Thursday after the close. The Irvine, California-based company announced its delivery numbers for the quarter in early July, which triggered a positive reaction from investors.

The Rivian Analyst: Wedbush’s Daniel Ives has an Outperform rating and a $40 price target for Rivian shares.

The Rivian Thesis: After the “brutal” production woes, the Rivian story is now finally starting to turn the corner, analyst Ives said in a note. Positive supply news heading into the second half of 2022 and 2023 will come forth when the company reports, he added.

The company’s reiteration of its 2022 production guidance of 25,000 vehicles is a key barometer of its health.

“We believe Rivian is beginning to gain some Street credibility as they navigate this difficult supply chain environment incrementally better which we ultimately will lead to an improving financial profile for the story into 2023,” Ives said.

Read how EV startups fared against Tesla in Q2

Ives noted that the demand for Rivian’s R1T trucks remains firm, with an impressive reservation/order book.

From a core engineering and design perspective and due to the Amazon.com Inc. AMZN commercial relationship, Rivian has the potential to be a major EV stalwart over the next decade, the analyst said.

The investment in the Georgia facility to accelerate the R2 platform will also be a long-term positive, he added.

“With over 90,000 pre-orders in the United States/Canada and winning Motor Trend’s 2022 Truck of the Year, we are starting to gain confidence that Rivian management can turn this ship around and begin to properly deliver to what the Street once envisioned,” Ives said.

Rivian Price Action: Rivian closed Friday’s session 1.91% higher at $37.40, according to Benzinga Pro data. In after-hours, the stock added another 1.07%.

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