Rivian (NASDAQ:RIVN) stock is just barely in the green today despite Wells Fargo increasing its price target by 80%. The bank raised the electric vehicle (EV) maker’s price target to $18 per share from $10 while maintaining its “equal weight” rating on the stock.
The bank’s changing tune towards Rivian is seemingly the product of a slightly better projected EBITDA loss in its second quarter of $757 million. That’s compared to FactSet’s current consensus of an $859 million loss. This in itself is the result of Rivian’s stronger-than-expected delivery numbers.
“Rivian’s Q2 deliveries of about 13,800 beat [the] guide of about 13,200,” wrote Wells Fargo’s Colin Langan, noting that the company’s inventories are stronger and that he is encouraged by the company’s new R2 vehicle platform, set to hit roads in 2026.
That said, Wells Fargo remains pessimistic over other aspects of the company’s expected financial results this year. Indeed, for fiscal 2024, the bank expects the company’s adjusted earnings to come in 7% below consensus estimates and Rivian’s own guidance.
RIVN Stock Surges as EV Industry Regains Momentum
Rivian stock has experienced something of a renaissance on Wall Street lately. Shares of the EV maker are up 95% over the past three months, assisted by strong Q2 deliveries, a promising investor event in June following its surprise joint venture with Volkswagen, and a general improvement in EV sentiment.
Still, it’s difficult to properly value a startup like Rivian. While the company clearly has high aspirations — evident from its new deal with Volkswagen (OTCMKTS:VWAGY) — Rivian has yet to achieve profitability and is unlikely to do so for years to come. As it stands, the company is expected to deliver 57,000 vehicles this year, with the figure projected to grow to 382,000 in 2029.
Wells Fargo isn’t the only analyst raising its price target on RIVN, either. Indeed, a number of firms have updated their targets in the face of Rivian’s rapidly climbing share price. This includes Mizuho, which raised Rivian’s target to $15 per share from $11, also citing the company’s Q2 vehicle deliveries.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
