It was not how Rivian (NASDAQ:RIVN) investors hoped the new year would begin. In 2024’s maiden session, on Tuesday, the shares slipped by 10% after the EV maker disappointed with its 4Q23 delivery haul.
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The company delivered 13,972 vehicles during the quarter, just falling shy of the Street’s forecast for 14,111 vehicles. During the period, Rivian reached a record quarterly production of 17,541 vehicles at its manufacturing facility in Normal, Illinois, amounting to a 7.6% sequential increase and a 75.1% year-over-year improvement. For the full year, deliveries reached 50,122 while the company produced 57,232 vehicles, exceeding the full-year 2023 production guide of 54,000 vehicles and representing a 135.2% uptick vs. the 24,337 vehicles produced in 2022.
While the Street’s reaction was downbeat, Truist analyst Jordan Levy tells investors not to read too much into the “mild” Q4 delivery miss given: “1) 4Q being a seasonally low quarter for Amazon EDV deliveries, and 2) RIVN’s previously discussed 1 week shutdown that took place during 4Q ahead of a more extended shutdown anticipated in 2Q24.”
“Ultimately,” the analyst went on to add, “the production beat looks promising, and the mild delivery miss vs. Street is not substantial enough for us to start waving any demand-related red flags.”
Accordingly, Levy reiterated a Buy rating along with a $26 price target, suggesting the shares have room to push ~28% higher from here. (To watch Levy’s track record, click here)
Similarly, Baird analyst Ben Kallo notes the big discrepancy between production and deliveries, and like Levy, puts the gap partially down to “EDV seasonality,” believing any excess supply will be put to good use while Rivian’s planned factory downtime in 2Q24/3Q24 takes place.
In fact, Kallo is resolutely upbeat here. “We view the growth in production as a sign of RIVN moving closer to achieving scale and reiterate RIVN as a favorite pick for 2024,” he went on to say.
Kallo maintained an Outperform (i.e., Buy) rating for RIVN shares, backed by a $30 price target, suggesting one-year growth of 48% from current levels. (To watch Kallo’s track record, click here)
Elsewhere on the Street, the stock claims an additional 11 Buys, 7 Holds and 1 Sell, all coalescing to a Moderate Buy consensus rating. At $25.63, the average target implies shares will appreciate by 26% over the coming months. (See Rivian stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
