Rivian Automotive Inc (NASDAQ:RIVN) shares tumbled nearly 10% Wednesday, but analysts at Wedbush believe there are reasons to be bullish after the company’s second-quarter results.
The firm reiterated its Outperform rating and raised its price target to $32 from $30 in a note to clients titled, 'After Some Dark Clouds..Sunny Days Ahead for Rivian'.
Rivian stock fell to $22.35 Wednesday.
The EV maker reported revenue of $1.12 billion, above the $1 billion consensus projected by analysts, along with a loss of $1.08 per share, narrower than an expected $1.41 loss per share.
The analysts cheered the company’s full-year production guidance, which it bumped to 52,000 units.
“After quarters of issues across management, production, and supply chain it feels as if the Rivian ship is finally steering in the right direction while focusing on ramping production and paying close attention to cost management,” analysts wrote.
Rivian increased its production by roughly 50% in the quarter and generated $35,000 in gross profit per vehicle delivered, the firm noted, while also introducing the Enduro motor platform as a Dual-Motor, AWD system into its R1 vehicle line.
“As we remain confident in Rivian’s long-term story, we believe this quarter was a great step in the right direction to regain confidence in the eyes of the Street,” analysts wrote. “Management has been transparent on objectives while executing as we can see in the company’s print last night.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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