Why EV-Maker Rivian Automotive Shares Are Climbing
Portfolio Pulse from Erica Kollmann
Rivian Automotive Inc. (NASDAQ: RIVN) shares are on the rise after Stifel initiated coverage with a Buy rating and a $23 price target. Analyst Stephen Gengaro highlighted the upcoming R2 line from Rivian's new facility with a 400,000-unit capacity, targeting the largest U.S. vehicle segment. Positive factors include brand awareness, a 100,000-EDV deal with Amazon, and expected margin expansion from 2024. Rivian's CFO discussed a new, cost-effective battery pack for R1 EVs and projected gross margin positivity in 2024. RIVN stock has increased over 10% in the past five days.
December 07, 2023 | 4:37 pm
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Stifel initiated coverage on Rivian Automotive with a Buy rating and a $23 price target, citing the upcoming R2 line, brand awareness, and a significant deal with Amazon. Rivian's CFO anticipates gross margin positivity in 2024.
The initiation of coverage by Stifel with a Buy rating and a specific price target is a strong positive signal to investors, often leading to increased investor confidence and a potential rise in the stock price. The mention of the R2 line addressing a significant market segment, the deal with Amazon, and the CFO's positive outlook for 2024 are all factors that could contribute to a bullish sentiment in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100