RBC expects Rivian shares to react ‘favorably’ to Q4 deliveries

RBC Capital analyst Tom Narayan reiterated a Sector Perform rating and $12 price target on Rivian Automotive (RIVN) after the company announced vehicle deliveries for Q4. While the Q4 delivery figure was largely expected it does add to the firm’s confidence in management’s expectation that Q4 will be gross profit positive, the analyst tells investors in a research note. As discussed, the firm believes it is likely that Rivian will hit this critical benchmark, in part thanks to $275M in contracted regulatory credit revenues all coming in Q4. As a result, the firm expects shares to react favorably given the beat.