Rivian share price target cut at Barclays ahead of earnings

Barclays Analyst Brian Johnson reflected on Rivian (NASDAQ:) ahead of the company’s first quarter earnings report, with a particular focus on the production ramp.

Earlier this month, Rivian said it produced 2,553 electric vehicle (EV) units in the first quarter with 1,227 deliveries, well below Johnson’s estimate of 1,800 deliveries.

“While first quarter deliveries lagged expectations, we believe the first quarter exit production rate supports RIVN’s FY22 production guidance of 25,000 units. RIVN said 1,410 YTD production units as of March 8, 2022 vs. 2,553 total units in 1Q, we estimate an exit rate of around 410 units per week Even assuming the weekly run rate holds for the entire Q2, this still implies ~5,350 units of production and FY22 production of ~18,600. improves approximately 10% from Q1 exit rate with an additional improvement of approximately 25% in Q2 compared to Q2,” Johnson said in a client note.

The analyst cut the second-quarter delivery estimate to 4,150 from 4,910 previously. As a result, the analyst cut the Q1 EPS estimate to -$1.35, but still better than the consensus of -$1.43. As a result, the price target changes from $42.00 to $38.00 per share.

Rivian’s stock price closed at $33.90.

By Senad Karaahmetovic

Karen J. Nelson