Deutsche Bank Lowers Price Target for Rivian Automotive Inc. Amid Supply Chain Concerns
Deutsche Bank has adjusted its outlook on Rivian Automotive Inc (NASDAQ: RIVN), lowering the price target to $13 from $14 while maintaining a Hold rating on the stock. Analysts cited ongoing supply chain challenges and concerns about achieving positive gross margins in Q4 2024 as reasons for the adjustment.
The revised model now sets the third-quarter revenue estimate at $867 million, below market consensus, with a full-year delivery forecast of 51,000 units and projected revenues at $4.4 billion. The lowered price target is based on a multiple of 1.5 times the projected 2027 enterprise value-to-revenue.
Despite recent challenges, Rivian has secured a $5 billion investment from Volkswagen and is seeking federal aid for its Georgia plant. Analysts from Goldman Sachs, Baird, Canaccord Genuity, and Stifel have maintained their ratings on the stock.
InvestingPro Insights:
- Rivian's market cap is $10.58 billion
- Operating income margin is -117.27%
- Gross profit margin is -41.1%
- Revenue growth is at 68.2% over the last twelve months
- Quarterly revenue growth has slowed to 3.3%
Overall, Rivian faces challenges with its financial performance and supply chain constraints. Investors should monitor the company's earnings report on November 7th for further insights.