Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 7 Mar, 24 | RIVN | Buy | USD 12.51 | USD 13.5 | USD 14.44 | 1 day | 15.4% |
Data Powered by EOD Historical Data (“EODHD”).
Rivian Automotive, Inc., together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name. It provides consumer services, such as digital financing and leasing, telematics-based insurance, vehicle maintenance and repair services, software services, and charging solutions. In addition, the company designs, develops, manufactures, and operates the Rivian Adventure Network Direct Current fast chargers, and offers access to Combined Charging Standard, as well as FleetOS, a proprietary, end-to-end centralized fleet management subscription platform. Further, it offers Rivian Commercial Van platform for Electric Delivery Van with collaboration with Amazon.com, Inc. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.
Higher Current Ratio: 4.71x in Q1FY24 vs 1.50x of Industry Median
Improved Asset Turnover Ratio: 0.07x in Q1FY24 vs 0.04x in Q1FY23
Negative Gross Margin: -31.30% in Q1FY24 vs 15.3% of Industry Median
Higher Debt-Equity Rato: 0.55x in Q1FY24 vs 0.21x in Q1FY23
Market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 12.51 | 11.8 | 13.5 | 14.44 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: The company reported a surge of 82% in their net revenue in Q1FY24 as compared to prior corresponding period, mainly driven by delivery of 13,588 vehicles.
Technical: 14 day period RSI is in a positive territory and showing a reading of 43.44, reversing from oversold territory.
Outlook: The company is focused on increasing production and reducing capital expenditure by USD 550 mn to USD 1,200 mn for the launch of R2.
Given the aforementioned factors, a "Buy" recommendations has been assigned on the stock at the closing price of USD 12.51 as on 7 March 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| RIVN Rivian Automotive Inc |
0.03 0.23% | 13.09 | - | - | 2.01 | 0.98 | 1.05 | -1.0931 |
| TSLA Tesla Inc |
-5.33 1.21% | 434.80 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
-0.14 0.80% | 17.36 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
1.15 0.66% | 174.77 | 8.97 | 9.29 | 0.006 | 1.10 | 0.0097 | 0.05 |
| BYDDY BYD Co Ltd ADR |
0.96 1.41% | 68.81 | 22.64 | 15.60 | 0.17 | 4.62 | 1.08 | 16.52 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and target levels is March 7, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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