EV maker Rivian Automotive (RIVN) saw its shares fall in today’s trading despite reporting a strong Q4 gross profit. The decline was attributed to the company’s cautious guidance for 2025 and ongoing challenges in the electric vehicle market. Despite these short-term concerns, several Wall Street firms remain bullish on Rivian’s long-term prospects.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Indeed, Needham reiterated its Buy rating and raised its price target to $17 per share due to the company’s strong balance sheet and upcoming launch of the more affordable R2 vehicle. Analyst Chris Pierce noted that Rivian’s strong Q4 gross margins and balance sheet improvement were positives. Nevertheless, he did mention that the 2025 delivery guidance and slow Q1 start were concerns. Still, Pierce highlighted an interesting positive for the company – Rivian owners seem to be satisfied and passionate about their vehicles, which is always a good sign.
Separately, Wedbush Securities also maintained its Outperform rating and $20 price target, as it remains confident in Rivian’s long-term vision. In fact, the company is working on significant transformations that include optimizing R1 production. In addition, Rivian’s partnership with Volkswagen (VWAGY) is expected to increase the company’s growth potential. As a result, Wedbush believes that Rivian is an attractive investment opportunity.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on four Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 13% increase in its share price over the past year, the average RIVN price target of $14.34 per share implies 10.8% upside potential.
