Rivian Could Be Next Big M&A Target For A Legacy Automaker, Says Analyst In Bold Prediction
Portfolio Pulse from Shanthi Rexaline
Gary Black, Managing Director of Future Fund, has suggested that electric vehicle startup Rivian Automotive (NASDAQ:RIVN) could be an attractive acquisition target for an established automaker. Black believes Rivian is undervalued compared to competitors like Lucid Group (NASDAQ:LCID) and Tesla (NASDAQ:TSLA). He suggests adjusting Rivian's enterprise value by deducting its $11 billion net cash from the market cap, resulting in an enterprise value of $15 billion.

July 13, 2023 | 10:10 am
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NEUTRAL IMPACT
Lucid Group's stock price could be affected by the comparison with Rivian's valuation.
The comparison of Lucid's valuation with Rivian's could influence investor perception and potentially affect its stock price. However, the impact is uncertain.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Tesla's stock price could be affected by the comparison with Rivian's valuation.
The comparison of Tesla's valuation with Rivian's could influence investor perception and potentially affect its stock price. However, the impact is uncertain.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Rivian could be an attractive acquisition target for an established automaker, potentially driving up its stock price.
The speculation of Rivian being an acquisition target could attract more investors, driving up its stock price. However, this is based on an analyst's prediction and not confirmed news.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 100