Analyst Daniel Roeska from Bernstein maintained a Sell rating on Rivian Automotive (RIVN – Research Report) and keeping the price target at $6.10.
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Daniel Roeska’s rating is based on several concerns about Rivian Automotive’s short-term and long-term financial performance and growth prospects. In the short term, Rivian has been struggling with achieving a break-even point on its vehicle gross profit, as evidenced by a significant loss per vehicle in the previous quarter. Despite some improvements expected from regulatory credit sales, the company still faces challenges in meeting its gross profit targets due to lower than planned production volumes.
Looking ahead to 2025, Roeska is cautious about Rivian’s ability to improve margins in a low growth environment. The anticipated launch of the R2 vehicle in 2026 is seen as crucial for the company’s future, but any delays or issues with pre-orders and pricing could negatively affect the stock. Additionally, Rivian’s financial outlook is hampered by expected high cash burn rates and potential shareholder dilution, leading to a lower valuation of the company’s future revenue potential.
Roeska covers the Consumer Cyclical sector, focusing on stocks such as Stellantis, General Motors, and Ford Motor. According to TipRanks, Roeska has an average return of 4.9% and a 50.00% success rate on recommended stocks.