This post was originally published on this site
Needham reinstated coverage of Rivian Automotive (NASDAQ:RIVN) with a Buy rating and $26.00 price target.
Needham analysts wrote in a note, “RIVN’s initial vehicle production guidance for ’23 is well below consensus delivery estimates, likely causing a material reset in investor expectations. However, RIVN was adamant on achieving positive gross margins in ’24 and their ability to manage through ’24 without requiring further capital. While the steepness of the implied ramp is uncomfortable, we view production issues as solvable, with RIVN’s move to their internally designed Enduro drive unit as a notable tailwind.”
They maintain a positive view on demand given RIVN’s last communication on net reservations and current vehicle owner satisfaction levels. In its first year of eligibility, a J.D. Power study showed that the Rivian R1T garnered the top satisfaction rating amongst premium EVs, dethroning 2022’s leader, the Tesla (NASDAQ:TSLA) Model 3. According to J.D. Power’s 2023 EVX Ownership Study, the Rivian R1T and MINI Cooper electric have the highest levels of owner satisfaction for premium and mass-market EVs, respectively.
Shares of RIVN are down 8.60% in pre-market trading on Wednesday.
