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Rivian Automotive (NASDAQ:RIVN) showed an early gain on Tuesday after the electric vehicle stock received some positive attention from Wall Street analysts.
Needham reiterated Rivian Automotive (RIVN) as a Conviction List pick after the Q3 delivery numbers and a convertible debt offering drove some outsized volatility. Analyst Chris Pierce said the stock’s risk/reward is at its most compelling level since Needham introduced coverage in March on the strength of consistent execution in the first half of 2023, a projected strong Q3, and consensus out-year estimates not yet reflecting the improved performance levels. Pierce also said RIVN is outperforming peers in the firm’s electric vehicle OEM Used Vehicle Tracker, a bullish indicator for new vehicle demand. Needham’s price target of $31 represents 25X the 2027 adjusted EBITDA estimate discounted back, with the model contemplating $6.5B in additional capital needs prior to the convertible offering.
UBS upgraded Rivian Automotive (RIVN) to a Buy rating from Neutral on what it sees as an improved set-up. The analyst team thinks that with the capital raise out of the way, the market can refocus on RIVN’s improving fundamentals. UBS also sees a reduced probability of an additional capital raise over the next year, with capital likely to be needed until the end of 2025. The firm assigned a price target of $24 to RIVN.
On Seeking Alpha, the Asian Investor recommended snapping up shares of Rivian Automotive (RIVN) amid the recent panic selling. It was observed that the company’s Q3 production and delivery figures show significant progress and suggest that Rivian (RIVN) could surpass its 52K EV production target for FY23 by a decent margin.
Shares of Rivian Automotive (RIVN) tracked 3.05% higher in premarket action on Tuesday to $19.35.
