Rivian stock rises ahead of delivery figures, bullish sentiments
Yahoo Finance Live checks out Rivian shares as analysts communicate bullish sentiments on the EV manufacturer ahead of its latest delivery figures.
DAVE BRIGGS: All right, Rivian shares closing higher today after Needham came out with the bullish call. The analysts feeling positive about the risk-reward going into first quarter deliveries, which are likely to be announced next week. Analyst Chris Pearce says that a Cox Auto Industry Insights call earlier this week showed a higher estimate of newly registered vehicles for the first quarter, higher than predicted, Seana.
SEANA SMITH: Yeah, certainly, it'll be interesting to see it in terms of what is going to be that huge catalyst. If they do exceed those delivery targets, obviously, that would be the catalyst here in the near term. But lots of questions about whether or not they continue to ramp up production and continue to meet some of the goals that they have outlined. The company does say it is on track and wants to deliver on its 50,000 unit goal for 2023. And we know that goal had been revised a few times in the past.
But Needham's price target, 26 bucks, that's almost double of where Rivian was trading today. So we'll see. Lots of questions just about the cost cutting initiatives that's happening right now at Rivian. We know that they have announced two rounds of layoffs. So they're trying to get their house in order, but we'll see.
DAVE BRIGGS: Yeah, layoffs in February. There was 6% cash burn. That's a huge problem there. They are running out of cash. And to your point earlier, they got to double production to meet their goals this year. That is a tall hill to climb. There is another catalyst. Some feel this US deal with Japan on critical EV materials also kind of boosted the stock price a little bit today. And again, much like Lulu, analysts love it right now. 15 buys, five holds, two sells, so a lot of upside, say the investors on Rivian right now.