Got a C-note that’s burning a hole in your pocket? Now’s a great time to consider wagering that extra $100 in your account on electric vehicle (EV) manufacturer Rivian Automotive (NASDAQ:RIVN). Sure, RIVN stock could fall this year, and that’s why you don’t want to invest too much. However, a number of expert predictions suggest that Rivian should deliver excellent value to the company’s shareholders.
It’s essential for informed investors to separate facts, rumors and opinions. For example, it was recently rumored that Rivian Automotive “could possibly produce as many as 62,000” vehicles in 2023. In actuality, though, Rivian’s official EV production forecast for this year is 50,000.
So, let’s take a closer look at the confirmed facts about Rivian, while also taking some analysts’ opinions into consideration (albeit with a grain of salt). At the end of the day, you might even decide to bet $100 on RIVN stock.
Rivian Automotive’s Results Weren’t Perfect
Just because well-heeled investors like Tudor Investment hedge fund founder Paul Tudor Jones and Soros Fund Management CEO George Soros have taken sizable share positions in Rivian Automotive, doesn’t mean you have to place a gigantic bet on the company. By all means, be aware that Rivian Automotive is a risky EV startup and adjust your share position size accordingly.
If you’re going to root out the most recent and relevant data points, a great place to start would be Rivian’s fourth-quarter 2022 shareholder letter. There, you can discover the good, the bad and the ugly when it comes to Rivian Automotive’s financial and operational results.
First and foremost, you’ll find impressive revenue growth. Rivian’s revenue increased from $54 million in the year-earlier quarter to $663 million in Q4 2022. The bad news here is that Wall Street expected $800 million.
Some Analysts Maintain High Expectations for RIVN Stock
Turning to the bottom line, Rivian Automotive reported a net earnings loss of $1.87 per share. That’s a major improvement over the $4.83 per-share loss of the year-earlier quarter. Furthermore, Rivian beat Wall Street’s forecast of a $2 per-share net loss.
In other words, Rivian Automotive’s results weren’t perfect, but there were some bright spots. Now, here’s where it gets really interesting. After the quarterly data release, all of the following analysts maintained a “buy” rating on RIVN stock. Here’s a list of the analysts and their current price targets:
- George Gianarikas (Cannacord): $40
- Dan Ives (Wedbush): $25
- Ben Kallo (Baird): $35
- Tom Narayan (RBC): $28
- Jordan Levy (Truist): $44
Bear in mind, as of early March 2023, Rivian shares traded for approximately $17 apiece. Thus, all of these “buy” ratings and lofty price targets imply significant share-price movement in 2023.
What You Can Do Now
Analysts on Wall Street are surely aware of Rivian Automotive’s shortcomings, and you should be as well. The best thing you can do right now is learn about Rivian’s strengths and weaknesses and make an informed decision.
Since Rivian isn’t profitable and missed analysts’ consensus revenue estimate for Q4 2022, it’s not a good idea to over-invest in RIVN stock. Instead, think about putting $100 on the chopping block as multiple experts envision potential future growth for Rivian Automotive.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.