Daniel Roeska, an analyst from Bernstein, maintained the Sell rating on Rivian Automotive (RIVN – Research Report). The associated price target remains the same with $6.10.
Daniel Roeska has given his Sell rating due to a combination of factors impacting Rivian Automotive’s financial performance and future outlook. Despite improvements in gross profit per vehicle, Rivian’s cash burn remains significantly high, with a reported $4.2 billion in cash burned in 2024 and an expected negative free cash flow of $3.2 billion in 2025. This cumulative cash burn is notably higher than what Tesla experienced at its peak, raising concerns about Rivian’s financial sustainability.
Additionally, Rivian’s guidance for 2025 suggests slower growth in vehicle volumes, which is expected to impact EBITDA negatively. The company’s efforts to reduce costs and enhance prices have not fully met their original break-even plans, and while a new software and services segment has been introduced, it has yet to add significant value. These challenges, combined with a valuation approach that suggests a lower future market value, underpin Roeska’s decision to maintain a Sell rating with a target price of $6.10 per share.
In another report released on February 24, Bank of America Securities also downgraded the stock to a Sell with a $10.00 price target.