Rivian Automotive reinstated with a Buy at Needham

Needham reinstated coverage of Rivian Automotive with a Buy rating and $26 price target after its Q4 results. The company’s initial vehicle production guidance for FY23 is well below consensus delivery estimates, likely causing a material reset in investor expectations, but Rivian was adamant on achieving positive gross margins in FY24 and its ability to manage through FY24 without requiring further capital, the analyst tells investors in a research note. The firm remains positive on the stock based on demand given in Rivian’s last communication on net reservations and current vehicle owner satisfaction levels.