Rivian Automotive Inc (RIVN) PT Raised to $8 at CFRA

CFRA analyst Garrett Nelson raised the price target on Rivian Automotive Inc (NASDAQ: RIVN) to $8.00 (from $5.00) while maintaining a Sell rating.

The analyst comments "We increase our 12-month target to $8 from $5, comparable to the EV peer average. We increase our 2024 adjusted EPS estimate to -$4.35 from -$4.40, but leave 2025 unchanged at -$3.30. RIVN posted Q4 vehicle deliveries of 14,183 units, up 1.5% Y/Y and in line with guidance. RIVN's Q4 production totaled 12,727 units, down 27.4% Y/Y. RIVN's totals were ahead of our production and sales estimates of 11,251 and 14,104 units, respectively. The numbers brought full-year sales and production guidance to 51,579 and 49,476 units, respectively, versus the company's corresponding guidance of 50,500-52,000 and 47,000-49,000. While volumes were ahead of expectations, based on RIVN's actual volumes, we are skeptical the company achieved the positive gross margin for the quarter that management had guided for, but won't know for sure until the company reports earnings on February 20. We also believe RIVN's cash burn rates remain very concerning. We reiterate our Sell opinion on cash flow and EV demand-related concerns."

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