Feb 24 - The Rivian Automotive Inc (RIVN, Financial) price target was cut by Guggenheim Securities on Monday. The firm changed its pricing outlook for electric vehicle manufacturer Rivian by decreasing the price target from $18 to $16 yet continuing with a "Buy" rating.
Rivian's fourth-quarter results revealed successful gross profit achievement alongside surpassing Wall Street's outlook following this announcement. Analysts observed that the fourth-quarter gross profit satisfied all payment conditions and demonstrated strong operational achievements. During the last twelve months, Rivian achieved a 12.09% growth in revenue, which totalled $4.97 billion amid dominant industry challenges.
According to Guggenheim, the cost analysis of the Bill of Materials had optimistic implications for the favourable equipment costs of the upcoming R2 model. The R2 project demonstrates promising potential to reduce its per-unit non-BOM costs below the R1 levels because this will enhance future profitability. Market participants should follow developing performance indicators within the competitive electric vehicle market space.
