Rivian Cruises With Open Options In EV Space, Not Just Amazon: 6 Analysts Peek Under the Hood Post-Q3

Zinger Key Points
  • Rivian Automotive raises its 2023 production target units from 52,000 to 54,000.
  • The company’s gross profit per unit delivered improved by ~$2,000 in 3Q23, says an analyst.

Rivian Automotive Inc RIVN shares tanked in early trading on Wednesday, even after the company reported upbeat third-quarter results.

The results came during an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Mizuho Securities On Rivian Automotive

Analyst Vijay Rakesh maintained a Buy rating and reduced the price target from $32 to $30.

“RIVN reported in-line SepQ top line at $1.34B, and delivered 15.6k vehicles versus 16.3k produced,” Rakesh wrote in a note.

The company raised its full-year production target units from 52,000 to 54,000, the analyst mentioned.

He added RCV will now be open to new customers, with Amazon.com, Inc AMZN exclusivity ending.

Cantor Fitzgerald On Rivian Automotive

Analyst Andres Sheppard reiterated an Overweight rating while slashing the price target from $29 to $27.

Rivian Automotive reported a revenue beat, with a lower adjusted EBITDA loss and gross margins in-line with expectations, Sheppard said.

“Gross profit per unit delivered improved by ~$2,000 in 3Q23 (vs. 2Q23) in spite of a reduction in lower cost or net realizable value (LCNRV) write-downs on inventory and losses on firm purchase commitment,” he added.

Goldman Sachs On Rivian Automotive

Analyst Mark Delaney reaffirmed a Neutral rating and price target of $25.

“We believe that the quarter was a modest incremental positive with respect to longer-term volumes, and the company is making progress on its cost targets,” Delaney wrote in a note.

“On volumes, Rivian announced that it will now be able to sell its delivery van to customers besides Amazon sooner than it previously expected,” the analyst stated. “Additionally, management commented that it believes demand remains strong, with new variants (e.g. dual motor and eventually the R2) and a leasing model planned to help address affordability issues in the current macro environment,” he noted.

Check out other analyst stock ratings.

RBC Capital Markets On Rivian Automotive

Analyst Tom Narayan maintained a Sector Perform rating and a price target of $15.

Rivian Automotive delivered “a solid quarter in terms of profit improvement and more meaningful raises to the 2023 guidance,” Narayan said.

“While our exit rate in Q4/24 remains unchanged, we lower 2024 numbers to account for more downtime and more of a step-function in gross margins in H2/24,” he added.

Truist Securities On Rivian Automotive

Analyst Jordan Levy reiterated a Buy rating and a price target of $26.

Rivian Automotive reported “solid” third-quarter results, Levy said in a note.

“In addition, the company announced that it has officially ended its EDV exclusivity agreement w/ Amazon, opening up RIVN's EDV platform to a broader commercial market that we expect could prove positive for 2024 deliveries,” he further wrote.

Wedbush On Rivian Automotive

Analyst Daniel Ives reaffirmed an Outperform rating and a price target of $25.

“Rivian delivered a solid quarter featuring beats on the top and bottom line which we view as another step in the right direction as the company hones in on its growth story,” Ives wrote.

“From a production and profitability perspective, the company produced 16,304 vehicles and delivered 15,564 vehicles while the automaker focused on its cost management, improving 3Q gross loss per vehicle by ~$2k which led to a gross profit of ($477.0) million,” he added.

RIVN Price Action: Shares of Rivian Automotive had declined by 2.644% to $17 at the time of publication Wednesday.

Read Next: 3 Lucid Group Analysts Unpack Disappointing Q3 Print: 'No New Products' To Boost Margins

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsAndres SheppardCantor FitzgeraldDaniel Iveselectric vehiclesEVsExpert IdeasGoldman SachsJordan LevyMark DelaneyMizuho SecuritiesRBC Capital MarketsTom NarayanTruist SecuritiesVijay RakeshWedbush
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