Rivian Automotive, Inc. (NASDAQ:RIVN) shares are trading higher on Friday. The company reported better-than-expected fourth-quarter financial results on Thursday.
The company reported an adjusted loss of 54 cents, beating the consensus estimate of a 68-cent loss. In addition, it reported revenue of $1.28 billion, beating the consensus estimate of $1.27 billion.
Following the announcement, several analysts revised/maintained the price forecast on the stock.
Quarterly Results: ‘A Step Forward’
Benchmark analyst Mickey Legg maintained a Buy rating and raised the price forecast from $18 to $25.
The analyst writes that the company’s quarterly performance is meaningful progress, highlighted by a return to positive gross profit as accelerating Software & Services growth helps cushion near-term swings in the core auto business ahead of the R2 launch.
Although automotive margins remained negative due to product mix and regulatory credit pressures, achieving positive gross profit for the full year underscores better cost control and execution, the analyst adds.
Legg says that management's 2026 outlook frames the year as a bridge period, with R2 volumes building in the second half, high-margin software continuing to scale, and automotive gross margins expected to move into positive territory by year-end.
The analyst writes that the quarter reduces execution risk and strengthens confidence in a more sustainable earnings inflection from 2027 onward, supported by a strong liquidity profile and clearer visibility on incremental Volkswagen funding.
Posied To Grab No.2 Position In Mass-Market EV Space
Canaccord Genuity analyst George Gianarikas reiterated a Buy rating with a price forecast of $21.
The analyst writes that Rivian looks poised to capitalize on its moment and, with the right product, pricing, and timing, the upcoming R2 could be a pivotal release—marking the shift from niche EV innovation to true mass-market relevance.
Gianarikas adds that in a market where Tesla remains the only true mass-market EV leader, Rivian has a clear opening to emerge as a credible No. 2.
As many legacy automakers pull back on EV investments amid softer demand, Rivian's focus and timing could allow it to pull ahead of the pack and build the next iconic American auto brand, writes the analyst.
Good Results Amid Weak EV Demand
Wedbush analyst Dan Ives reiterated an Outperform rating and maintains $25 price forecast.
The analyst writes that Rivian reported strong quarter results, delivering broad-based beats and issuing achievable FY26 guidance as it works through a challenging EV demand environment while driving costs lower ahead of the R2 launch in the second quarter.
Ives adds that he remains confident in Rivian's long-term strategy as the company navigates a major transformation, works to optimize R1 production, and prepares to scale its R2 and midsize platform supply chains beginning in FY26.
RIVN Price Action: Rivian Automotive shares were up 25.75% at $17.60 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Shutterstock
- No comments yet. Be the first to comment!