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how was it Rivian (NASDAQ:RIVN) Investors were looking forward to the start of the new year. In the first trading session of 2024 on Tuesday, the stock fell 10% after the EV maker disappointed with its 2023 fourth-quarter delivery performance.
The company delivered 13,972 vehicles in the quarter, slightly short of Street expectations of 14,111. During this period, Rivian achieved record quarterly production of 17,541 units at its Normal, Illinois manufacturing facility, an increase of 7.6% sequentially and an improvement of 75.1% year-over-year. For the full year, the number of vehicles delivered reached 50,122 units, and the company’s vehicle production volume was 57,232 units, exceeding the production target of 54,000 units for the full year of 2023, and the production volume in 2022 will be 24,337 units. It increased by 135.2% compared to the previous year.
Although the Street’s reaction was pessimistic, Trust analyst Jordan Levy advised investors that 1) Q4 was a seasonally low quarter for Amazon EDV deliveries, and 2) previously discussed Given RIVN’s one-week period, we advise investors not to read too much into the “minor” Q4 delivery miss. The closure occurred during the fourth quarter before a longer closure is expected in the second quarter of 2024. ”
The analyst added: “Ultimately, strong production looks promising and minor delivery errors on the road are not significant enough to start raising red flags related to demand.”
As such, Levy reiterated his Buy rating with a $26 price target, suggesting the stock has room for up to 28% upside from here. (To see Levy’s track record, click here)
Similarly, Baird analyst Ben Caro points to a large disconnect between production and delivery, and like Levy, part of the gap is due to “EDV seasonality.” We believe the excess supply will be put to good use until Rivian’s planned factory downtime begins in Q2 2024 to Q3 2024. place.
Indeed, Caro is resolutely optimistic here. He continued: “We believe the increased production is a sign that RIVN is moving closer to achieving scale and reiterates that RIVN is a favorite for 2024.”
Caro maintained an Outperform (i.e. Buy) rating on RIVN stock, backed by a $30 price target, implying 48% growth in one year from current levels. (Click here to see Kallo’s track record)
Elsewhere in the market, the stock has an additional 11 Buys, 7 Holds, and 1 Sell, all of which combine for a Moderate Buy consensus rating. The average target price is $25.63, implying an upside of 26% for the stock in the coming months. (look Rivian stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
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