Home Finance Rivian stock rises toward 8th-straight gain after Wedbush gets more bullish

Rivian stock rises toward 8th-straight gain after Wedbush gets more bullish

by CoinNews

Shares of Rivian Automotive Inc. rallied Friday toward an eighth-straight gain after Wedbush analyst Dan Ives boosted his price target by 20%, saying he believes the electric vehicle maker is “finally making a major turn” toward its longer-term business model.

Ives reiterated the outperform rating he’s had on the stock
since it went public, while raising his price target to $30 from $25.

“We believe after a number of ‘one step forward, two steps back’ excuses for Rivian and supply chain headaches, the company is finally making a major turn towards executing on its longer term business model,” Ives wrote in a note to clients. “Demand remains firm for the company’s unique EV model lineup while production appears to now be on the road to success as seen with stronger deliveries in 2Q.”

Rivian’s stock rose 3.5% toward a seven-month high in premarket trading, after soaring 60.7% amid a seven-day win streak through Thursday. If the stock closes higher Friday, it would match its record eight-day win streak that ended Sept. 14, 2022.

Ives’ raised price target comes after Rivian’s largest shareholder, Amazon.com Inc., announced earlier this week that it was taking delivery of the first of Rivian’s new electric delivery vans in Europe.

Rivian had also reported this week second-quarter record deliveries that nearly tripled from a year ago, and production that more than tripled.

“After quarters of disappointing production speed bumps, supplier issues, and what felt like an ongoing agita situation, Rivian now appears to have its production and supply chain issues well under control with the laser focus on getting deliveries in the hands of eagerly awaiting customers,” Ives wrote.

Ives’ new price target, which implies about 39% upside from Thursday’s stock closing price of $21.62, made him the third-most bullish on Rivian of the 24 analysts surveyed by FactSet who cover the company.


The most bullish were Wolfe Research’s Rod Lache and Canaccord Genuity’s George Gianarikas, who both had $40 price targets on the stock.

Fourteen analysts were bullish on Rivian, eight were neutral and two were bearish, according to FactSet. The average stock price target was $23.55.

Rivian’s stock has run up 49.4% over the past three months through Thursday, while the Global X Autonomous and Electric Vehicles exchange-traded fund
has advanced 13.4% and the S&P 500 index
has gained 7.5%.

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