1 Wall Street Analyst Thinks Rivian Stock Is Going to $8. Is It a Sell?

Core Viewpoint - Rivian Automotive is viewed as a sell despite a significant increase in the price target by an analyst, indicating skepticism about the company's profitability and cash burn rates [1][2]. Group 1: Analyst Evaluation - Garrett Nelson of CFRA raised Rivian's target price to $8 per share, a 60% increase from the previous target of $5, but maintains a sell recommendation as this target is still 51% below the stock's recent closing price [2]. - Several analysts adjusted their evaluations following Rivian's fourth-quarter and annual production and delivery reports, which exceeded consensus estimates with quarterly production of 12,727 vehicles and deliveries of 14,183 [3]. Group 2: Financial Concerns - Despite positive production and delivery numbers, there are concerns regarding Rivian's ability to achieve positive gross margins and the high rates of cash burn, which remain troubling for the historically unprofitable EV maker [4]. - The automotive industry is capital-intensive, and Rivian has yet to demonstrate it can produce at a scale that ensures reliable profitability, raising caution about its stock [5].