4 Rivian Analysts On Sales Growth, Widening Losses: Is EV Maker Back On Track After 'Horror Show' IPO?

Zinger Key Points
  • "The company is one of the most viable among the start-up EV automakers," one analyst said.
  • Rivian raised its full-year adjusted EBITDA loss projection from $4.75 billion to $5.4 billion.

Rivian Automotive Inc RIVN shares were falling slightly Friday after the company reported impressive second-quarter revenue growth but said 2022 losses would be wider than expected.

On Thursday, Rivian reported a second-quarter adjusted EPS loss of $1.62, slightly better than the $1.63 loss analysts anticipated.

Second-quarter revenue of $364 million also exceeded consensus Wall Street estimates of $337.5 million. Revenue was up 283% compared to the first quarter.

Rivian reported 98,00 net preorders for its R1-series truck and SUV as of June 30.

The company previously reported "over 90,000" preorders as of May 11. Rivian reiterated its previous full-year production guidance of 25,000 vehicles but raised its full-year adjusted EBITDA loss projection from $4.75 billion to $5.4 billion.

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Production And Delivery Ramp: Bank of America analyst John Murphy said Rivian's production ramp and growing preorder count bode well for the stock.

"The company is one of the most viable among the start-up EV automakers and also a relative competitive threat to incumbent automakers (and possibly to other automotive-related verticals)," Murphy wrote.

Wedbush analyst Daniel Ives said Rivian continues to gain traction with its production and delivery.

"After a horror show coming out of the gates with its IPO, RJ & the team have finally gotten this potential EV stalwart back on track with clear momentum into 2023 and more production on the way with the Georgia factory blueprints setting the path for the coming years," Ives wrote.

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Concerning Cash Burn: Morgan Stanley analyst Adam Jonas said Rivian's demand is strong and its supply is improving.

"While substantial cash burn should continue, we believe liquidity can last through most (if not all) of FY23," Jonas wrote.

D.A. Davidson analyst Michael Shlisky said Rivian's earnings trajectory is downward for the time being.

"We do note that macro conditions do not appear to have dampened demand for RIVN vehicles, which is clearly a good sign, but net/net we believe RIVN has to overcome numerous near-term challenges to potentially turn us more constructive on the stock," Shlisky wrote

RIVN Ratings, Price Targets:

  • Bank of America has a Buy rating and $70 target.
  • Morgan Stanley has an Overweight rating and $60 target.
  • Wedbush has an Outperform rating and raised the price target from $40 to $45. 
  • D.A. Davidson has an Underperform rating and raised the price target from $24 to $27.
  • Photo courtesy of Rivian. 
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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationTop StoriesAnalyst RatingsBank of AmericaD.A. DavidsonDaniel IvesJohn MurphyMichael ShliskyMorgan Stanley. Adam JonasWedbush