Rivian Automotive
stock was accelerating Wednesday after receiving an upgrade from analysts who think the electric-vehicle company is making strides.
DA Davidson analyst Michael Shlisky upgraded shares of Rivian (ticker: RIVN) to Neutral from Underperform and lifted his price target to $18 from $11 in a Wednesday report. Rivian stock was up 5.4% to $20.62 shortly after the open.
Shlisky noted a few positives for the company over the last month, including its entry into Europe through
Amazon.com
(AMZN), who said more than 300 electric vans will be rolled out across Germany in the coming weeks, and reiterated its plan to have 100,000 of Rivian’s delivery vans on the road globally by 2030. The analyst was expecting the EV maker to enter Europe with its van, but wrote that “the timing is much earlier than expected.”
He also highlighted a recent success in vehicle deliveries: Earlier this week, the company said it delivered 12,640 vehicles in the second quarter, while Wall Street had expected about 11,000. And Shlisky praised last month’s purchase of Iternio—the owner of “A Better Route Planner”—a mapping company that helps drivers plan charging stops on long trips.
Though Shlisky says the last month was encouraging for Rivian, he is still cautious. The company faces competition, he explained, and it is still grappling with supplier changeovers and challenges in ramping up production, and may have to deal with issues such as an uptick in cancellations. “The mixed narrative keeps us from recommending the stock at the moment,” he wrote.
Other analysts, however, were more confident. Needham analysts maintained their Buy rating and raised their price target to $28 from $26 in a Wednesday report, citing better-than-expected second-quarter numbers. Truist analysts reiterated their Buy rating and $28 price target in a report earlier this week, citing similar reasoning.
Write to Emily Dattilo at [email protected]
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