Written by Cláudio Afonso | LinkedIn | X
Benchmark analyst Mickey Legg reaffirmed on Tuesday a bullish price target on the EV maker Rivian as it expects “a stronger delivery ramp” in the second half of the year.
In a new research note, Legg reaffirmed a Buy rating on the stock with an $18.00 price target, suggesting a 63% upside from Monday’s closing price.
Benchmark expects the carmaker to reliver 46,300 vehicles in 2025 and a weaker first quarter “due to seasonality and limited demand, partially due to the Los Angeles fires.”
“RIVN still expects between 46k-51k deliveries for the full year, and we estimate 46.3k deliveries, approximately flat from our previous estimate. Lower 1Q deliveries are expected due to seasonality and limited demand, partially due to the Los Angeles fires.”
The firm lowered its first quarter delivery estimates from 10,000 to 8,000 units. “We’re aligning our previously aggressive 1Q delivery outlook to be in line with guidance, calling for 8k vehicles deliveries versus our 10k previous estimate,” the analyst wrote.
“The company has a planned shutdown at its Normal, IL plant in the second half of this year as it prepares for the launch of the R2 platform in 1H26,” Legg added before commenting on the second half of the year.
“We expect a stronger delivery ramp in the second half of 2025 as industry expectations realign and hype for the R2 platform builds. Maintain Buy & $18 price target,” he wrote in the research note.
Earlier this week, Mizuho analyst Vijay Rakesh lowered Rivian’s price target from $13 to $11, maintaining a Neutral rating due to concerns that weakening consumer sentiment “could weigh on deliveries.”
Rivian sold an estimated 4,100 electric vehicles in the U.S. last month, according to Motor Intelligence. While this was a 34% increase from January, it marked a 21% decline year-over-year.
To boost first-quarter deliveries, Rivian recently introduced a limited-time lease incentive, offering up to $13,500 in savings for customers who take delivery by the end of March.
As of the time of writing, Rivian shares are trading 5% higher at $11.60.
