Analyst George Gianarikas of Canaccord Genuity maintained a Buy rating on Rivian Automotive (RIVN – Research Report), retaining the price target of $23.00.
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George Gianarikas has given his Buy rating due to a combination of factors underpinning Rivian’s strategic positioning and financial outlook. The company has chosen a challenging yet rewarding path by adopting a vertically integrated strategy that aims to build vehicles and many of their subsystems internally. This approach is expected to create a distinct electric vehicle offering that satisfies customers and fosters long-term sustainable value. The company’s efforts are reflected in positive consumer reviews and improving financial metrics.
Rivian’s financial landscape is showing promising signs, as evidenced by the company achieving its first gross margin positive quarter in 4Q24. Management anticipates maintaining these positive margins into 2025, with a line to EBITDA positivity projected for 2027, partially driven by the launch of the lower-cost R2 model in 1H26. Additionally, partnerships like the recent joint venture with Volkswagen are helping address capital concerns and position Rivian as a strong contender in the EV market. As other automakers pull back from EV commitments, Rivian’s strategy positions it to potentially become the next American auto icon, complementing Tesla in the Western market.
Gianarikas covers the Industrials sector, focusing on stocks such as Enovix, Arq Inc, and Generac Holdings. According to TipRanks, Gianarikas has an average return of 1.7% and a 39.09% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $17.00 price target.