Rivian
Shares of Rivian Automotive Inc. (NASDAQ: RIVN) have virtually doubled in the past three months but remain down by 30% year over year. The company announced in June that it would adopt the Tesla North American Charging Standard, giving owners of Rivian’s R1T electric pickup and its coming R1S SUV access to Tesla’s U.S. network of more than 12,000 charging stations. Production and deliveries also rose sharply in the June quarter, and the company said it is on track to deliver 50,000 EVs this year.
Of 23 analysts covering the stock, 14 have a Buy or Strong Buy rating and nine have Hold ratings. At a share price of around $25.25, the upside potential based on a median price target of $27.00 is 6.9%. At the high target of $40.00, the upside potential is about 58%.
Analysts expect Rivian to report first-quarter sales of $1 billion, up 51.6% sequentially and up from $364 million in the year-ago quarter. The company is expected to post an adjusted loss per share of $1.39, compared to a prior quarter loss of $1.25 and a year-ago loss per share of $1.62. For the full 2023 fiscal year, analysts are forecasting an adjusted loss per share of $5.30 compared to a prior-year loss of $6.34 per share. Sales are forecast to reach $4.13 billion, up about 150%.
Rivian is not expected to post a profit in 2023, 2024 or 2025. The enterprise value to sales multiple is expected to be 3.8 in 2023. Based on average estimated sales of $9.02 billion and $11.39 billion for 2024 and 2025, respectively, the multiples are 2.0 for 2024 and 1.4 for 2025. The 52-week trading range is $11.68 to $40.86. Rivian does not pay a dividend, and total shareholder return for the last year was negative 30.18%.
Upstart
Consumer lending platform Upstart Holdings Inc. (NASDAQ: UPST) has seen its share price soar by nearly 115% over the past 12 months, including a gain of an eye-watering 359% so far in 2023. What a difference AI makes. That and a short squeeze in July that forced many short sellers to cover their losing bets. Upstart’s lending platform already uses AI to make and service consumer and auto loans, and investors are going to be listening closely to the company’s outlook comments.
Of 15 analysts covering the stock, just one has a rating of Buy, and only five have Hold ratings. At a price of around $61.00, the shares trade far above the median price target of $15.00. At the high target of $72.00, the implied gain is about 18%.
Second-quarter revenue is forecast to come in at $135.32 million, up 31.5% sequentially but down 40.7% year over year. Analysts expect the company to post a loss per share of $0.07, better than the prior quarter’s loss of $0.47 per share and down from year-ago EPS of $0.01. For the full year, Upstart is expected to post a loss per share of $0.48, worse than last year’s EPS of $0.21, on revenue of $559.1 million, down 33.6%.
The stock trades at 93.8 times estimated 2024 EPS of $0.65 and 63.4 times estimated 2025 earnings of $0.96. The 52-week range is $11.93 to $72.58, and the company does not pay a dividend. Total shareholder return for the past year was 111.52%.
Originally published at 24/7 Wall St.
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