Shares of Rivian Automotive Inc. (RIVN) jumped over 4% in pre-market trading on Monday after multiple brokerages hiked their price targets on the stock.
Bernstein hiked its price target on Rivian to $7.05 from $6.10 while maintaining its ‘Underperform’ rating on the shares. However, the brokerage’s new price target still implies a 51% downside to the stock’s closing price of $14.26 on Friday.
The brokerage said that the company’s first-quarter earnings were better than feared, adding that the long-term path remains capital-intensive and scale-constrained. Rivian needs near-perfect execution through 2030 to reach scale, breakeven, and positive free cash flow – an ask too high in a sector known for surprises, the firm opined, as per TheFly.
Stifel analyst Stephen Gengaro also raised the firm’s price target on Rivian to $18 from $16 while keeping a ‘Buy’ rating on the shares. Stifel believes the company is making "solid progress toward several key milestones" despite near-term headwinds, and its long-term story is intact.
Rivian reported its first-quarter earnings last week, beating Wall Street expectations. However, the company trimmed its 2025 delivery outlook to 40,000 to 46,000 units from a prior projection of 46,000 to 51,000, citing tariff-related headwinds and macroeconomic uncertainty.
Rivian, however, still expects to achieve a modest positive gross profit for 2025.
According to data from Koyfin, 16 of 29 analysts covering the stock rate it a ‘Hold’, 10 rate it a ‘Buy’ or ‘Strong Buy', while three others rate it a ‘Strong Sell.’ The average price target on the stock is $14.06.
On Stocktwits, retail sentiment around Rivian remained unmoved in the ‘extremely bullish’ territory over the past 24 hours while message volume remained at ‘extremely high’ levels.
RIVN stock is up by about 8% this year and nearly 31% over the past 12 months.
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