Research Alert: CFRA Maintains Buy Opinion On Shares Of Rivian Automotive, Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month price target by $2 to $22, a material premium to our DCF valuation and RIVN's tangible book value of $3.49/share. We are raising our adjusted EPS estimates to -$2.25 from -$2.40 for '26 and to -$1.85 from -$1.95 for '27. Following RIVN's better-than-expected Q1 earnings, we are raising our estimates and price target and maintaining a Buy rating on the shares. RIVN's Q2 earnings were ahead of expectations, although cash burn remains a key concern, with FCF deteriorating, due to increased operating expenses and working capital consumption. We continue to view the stock's risk/reward as favorable, and we believe investor sentiment could shift in a higher oil price environment (and potentially, a shifting political environment) after a very difficult stretch of equity performance. We think RIVN is in a much more favorable situation relative to EV manufacturer peers due to its software and services partnership and positive gross margins.
