Needham Maintains ‘Buy’ Rating on Rivian

Needham analyst Chris Pierce maintained on February 21, 2025, Rivian’s ‘Buy’ rating, while lifting the price target from $14 to $17.

“We reiterate our Buy rating and raise our target to $17 post 4Q results and company commentary.

We continue to see RIVN as a long term winner in the ICE to EV transition given owner satisfaction and passion ahead of launching the more affordable, TAM increasing R2 vehicle, combined with RIVN’s strong balance sheet post the Volkswagen joint venture.

Bulls can take solace in stronger than expected 4Q gross margins, with bears focusing on ’25 delivery guidance and a slow start to the year given Q1 messaging, which we view as far with RIVN struggling to achieve escape velocity in annual units.

Our $17 target is 15x our FY28E adj EBITDA discounted back, with our longer term view and balance sheet strength supporting a higher level of patience against a volatile backdrop for auto OEMs.”

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