Wells Fargo analysts raised their price target on Rivian Automotive (NASDAQ:RIVN) to $18 from $10 while maintaining an Equal Weight rating. The analysts’ revised estimate for Q2 adjusted EBITDA is -$757 million, better than the consensus estimate of -$859 million, reflecting improved delivery results.
However, the analysts remain cautious about Rivian’s ability to meet fiscal 2024 consensus and adjusted EBITDA guidance of $2.7 billion, citing less-than-expected material cost savings from the Gen2 R1 and lower fixed cost leverage due to stagnant pricing and lower second-half deliveries.
Despite these concerns, the analysts adjusted their estimates to reflect updated delivery numbers, additional liquidity, and potential savings from the Volkswagen joint venture. The higher price target reflects improved liquidity and cost management actions.