Electric vehicle (EV) maker Rivian (RIVN) is scheduled to report its third-quarter results on November 7, after the market closes. RIVN shares have plunged about 55% so far this year, reflecting concerns related to the company’s disappointing Q3 deliveries, continued losses, slowing demand in the EV space due to macro pressures, and intense competition. Analysts expect Rivian to report a loss per share of $0.95 compared to $1.19 in Q3 2023.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Additionally, they project revenue to decline about 24% year-over-year to $1.01 billion, reflecting lower deliveries in the third quarter.
Analysts’ Views on Rivian Stock Ahead of Q3 Results
Last month, Rivian reported a 35.6% year-over-year decline in its Q3 deliveries to 10,018 vehicles. Moreover, the company slashed its full-year production outlook to the range of 47,000 to 49,000 vehicles from the prior guidance of 57,000 units. Rivian blamed the guidance cut on production disruption due to the shortage of a shared component for its R1 vehicles and commercial van.
Nonetheless, the company maintained its annual delivery outlook in the range of 50,500 to 52,000 vehicles, reflecting a low-single-digit growth compared to last year.
Following the disappointing deliveries report and a lower production outlook, Truist analyst Jordan Levy reduced the price target for Rivian Automotive stock to $12 from $16 and reaffirmed a Hold rating. Levy believes that the challenges associated with the expansion of the EV manufacturing platform once again emerged in Q3 for Rivian, with the company missing analysts’ delivery expectations.
Levy added that the company would have to prove to investors that it has the ability to profitably produce its vehicles on a continued basis, given the lack of visibility into the resolution of the supply shortage and the revised guidance.
Likewise, DA Davidson analyst Michael Shilsky reiterated a Hold rating on RIVN stock with a price target of $13. The analyst reduced his estimates to reflect the production shortfall compared to expectations in the third quarter and the potential impact of the ongoing supply-chain headwinds on Q4 performance.
Options Traders Anticipate a Major Move
TipRanks’ Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting about a 15% swing in either direction in RIVN stock.
Is RIVN Stock a Good Buy?
Overall, Wall Street is cautiously optimistic about Rivian stock, with a Moderate Buy consensus rating based on eight Buys, 10 Holds, and one Sell recommendation. The average RIVN stock price target of $16.67 implies 57.4% upside potential.
