Analyst Ratings Coverage
On Tuesday July 5th Needham (Analyst Rank#31) issued a research report on Rivian’s stock, and upgraded the 12 month price target on the company from a forecast of $26 from $28 per share. The analyst maintained the “Buy” rating on the stock.
DA Davidson (Analyst Rank#39) just raised it’s 12 month price target on Rivian’s stock to $18 from $11. The analyst also upgraded the stock to “Neutral” from a “Underperform” rating.
RIVN Stock Forecast
Based on the available information, the average analyst target price for Rivian Automotive Inc over the next 12 months is USD 26.12. This indicates that analysts, on average, expect the stock to experience a significant increase from its current price. The average analyst rating is Strong Buy, suggesting a favorable outlook for the company’s stock.
Stock Target Advisor’s own stock analysis of Rivian Automotive Inc is slightly bearish. This analysis takes into account three positive signals and four negative signals. While the details of these signals are not provided, it implies a more cautious stance on the stock’s performance.
As of the last closing, Rivian Automotive Inc’s stock price stood at USD 19.56. This means that, based on the average target price, analysts anticipate a potential upside of around 33% over the next 12 months.
In terms of recent performance, Rivian Automotive Inc’s stock has shown significant volatility. Over the past week, the stock price has increased by +40.32%, indicating a period of strong positive momentum. Looking at the past month, the stock has appreciated by +35.08%. However, over the last year, the stock price has experienced a decline of -23.89%.\
Fundamental Analysis
Fundamental Analysis Points on Rivian’s Stock:
What to like:
- Low volatility: Rivian’s stock has demonstrated stable and consistent annual returns compared to its sector peers, indicating lower volatility. However, stability may limit potential returns.
- High market capitalization: Rivian is one of the largest entities in its sector, placing it in the top quartile. Larger companies tend to exhibit more stability.
- Superior revenue growth: Rivian has exhibited top quartile revenue growth over the past five years when compared to its sector, indicating strong performance in generating revenue.
What not to like:
- Poor risk-adjusted returns: Although Rivian may outperform its peers in terms of returns, its risk-adjusted returns are below the median. This suggests that the returns achieved are unpredictable, so caution is advised.
- Negative cash flow: Rivian has experienced negative total cash flow in the most recent four quarters, which indicates a potential liquidity concern.
- Negative free cash flow: The company has also reported negative total free cash flow in the most recent four quarters, indicating potential challenges in generating cash from its operations.
- Low earnings growth: Rivian has shown below median earnings growth over the past five years compared to its sector. This suggests that the company’s earnings have not grown as strongly as its industry peers.
