Rivian Is A 'Long-Term Winner' With Established Corporate Order Pipeline: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Chris Pierce reiterated a Buy rating on Rivian Automotive, Inc. (NASDAQ:RIVN), raising the price forecast to $20 from $13. Pierce sees Rivian as a long-term winner in the EV transition, highlighting its strategic focus on cost savings, supplier relationships, and factory efficiencies. The recent Volkswagen JV is expected to provide up to $5 billion in capital, boosting Rivian's software-defined vehicle strategy. Pierce also raised the FY24 revenue forecast to $4.563 billion from $4.254 billion. Despite these positive outlooks, RIVN shares are trading lower by 7% to $13.46.
June 28, 2024 | 5:23 pm
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Needham analyst Chris Pierce reiterated a Buy rating on Rivian, raising the price forecast to $20 from $13. Rivian is seen as a long-term winner in the EV transition, with strategic focus on cost savings, supplier relationships, and factory efficiencies. The recent Volkswagen JV is expected to provide up to $5 billion in capital, boosting Rivian's software-defined vehicle strategy. FY24 revenue forecast was raised to $4.563 billion from $4.254 billion. Despite these positive outlooks, RIVN shares are trading lower by 7% to $13.46.
The analyst's positive outlook and increased price target, along with the significant capital infusion from the Volkswagen JV, are strong indicators of potential growth. However, the current 7% drop in share price suggests short-term volatility.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The recent Volkswagen JV with Rivian is expected to provide up to $5 billion in capital, supporting Rivian's software-defined vehicle strategy. This partnership underscores Volkswagen's commitment to the EV market and could enhance its strategic positioning.
The JV with Rivian highlights Volkswagen's strategic move into the EV market, which could positively impact its market perception and future growth. The capital infusion is significant, but the direct impact on Volkswagen's stock may be less immediate.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50