The stock market in 2022 was mostly the bearer of bad news. Investors are pinning their hopes on a change and no doubt those who are supporting it Revian (RIVN) They too. Shares of EV startups have been hitting year-to-date, although the cards may eventually show the opposite of fate.
The company has been plagued by problems ranging from chip shortages to covid-related headwinds to rearrangement of car lines. Everyone has had an impact on production but investors have lost confidence in the Rivian story.
But the company offered an olive branch to disgruntled investors when it made its Q1 financial report last week. Rivian has regained its target of producing 25,000 vehicles this year and noted strong demand – it now has over 90,000 orders for its vehicles, up from 83,000 in the latest update in March.
“Most importantly,” said Emanuel Rosner, an analyst at Deutsche Bank. Without the need for additional capital. “
Between 2023 and 2025, Rosner now expects capex spending to be in the 2 billion + range each year, down from the previous $ 3 billion- $ 3.5 billion range. According to analysts, this should leave enough cash to take care of Revian’s needs by 2024 and until the company manages to have a positive free cash flow as predicted by management.
Investors will undoubtedly welcome “encouraging operational traction” and company “thoughtful updates on capital allocations”. However, in the near future, and with nearly 80% of the company’s stock expiring, Rosner thinks the stock may be “under technical pressure.”
But taking a long-term view, Rozna is overwhelmed. “We continue to believe that the company offers attractive products and a well-thought-out business plan with a great EV player, unique in both hardware and software,” the analyst concludes.
As such, Rozner reiterated a buy rating on RIVN shares, although the price target has been lowered from $ 90 to $ 69. Still, there is an increase of 157% from the current level. (To view Rosner’s track record, Click here)
The average goal of the road also remains a bullish; At $ 52.38, the figure makes room for a% 95% one-year return. Overall, the ratings are mixed yet in favor of the bulls; Based on a 9 by vs. 6 hold, the stock claims a moderate by consensus rating. (See Revian Stock Forecast at TipRanks)
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Disclaimer: The views expressed in this article are those of the featured analyst only. Content is intended for informational purposes only. It is very important to do your own analysis before making any investment.