Rivian Automotive (RIVN: NSD) has seen its stock price plummet from its pandemic highs. While the company boasts a revolutionary electric truck design and a major backer in Amazon, significant cash outflows raise concerns about its long-term viability.

Delving Into Rivian’s Current Situation: 

Rivian’s heavy R&D spending along with costs associated with production ramp-up have raised Investors’ eyebrows, who may be questioning future profitability and potential. Among this uncertainty, the role of Amazon as a major backer offers some relief, but the company still faces a daunting challenge of justifying its stock’s stretched valuation in comparison to competitors.

Stock Target Advisor’s Analysis on Rivian: 

Stock Target Advisor has rated Rivian as a Hold, with a target price of $13.89, with potential for price growth over the upcoming 12 months projected at 26.15%. On average, other analysts’ target price for Rivian is slightly higher at $15.58, with a general consensus being a Buy rating.

The market’s coverage of Rivian encompasses 18 analysts who, on average, rank the stock with a Buy rating and a target price of $15.58. Their ratings range from a minimum price target of $8 to a maximum of $25.

For the broader Auto Manufacturers sector, the average analyst rating leans towards Buy, while Stock Target Advisor maintains a Bearish stance. Over the past month, the sector experienced an average return of -13.49% and -1.43% in the past week.

Conclusion: 

While Rivian presents potential via its cutting-edge EV designs and support from high-profile backers, these factors sit alongside a troubling financial performance and persistent cash burn issues, which together generate concerns for its long-term survival and stock valuation.