Rivian Gets Upgrade After Introducing New Models

Rivian Automotive Inc. (RIVN) stock received an upgrade and a 40% bump in price target by analysts at investment bank Piper Sandler. The EV-maker’s shares advanced Friday. 

Analysts Alexander Potter and Ben Johnson in a Thursday research report raised their rating to “overweight” from “neutral,” lifting the firm’s price outlook to $21 from $15. The stock closed that day at $10.69.

The Piper Sandler analysts pointed to last week’s introduction of three models, the R2 SUV and the R3 and R3X crossovers. Potter and Johnson noted the R2 generated 68,000 orders in less than 24 hours, and they said they believe the R3 “could be one of the most compelling designs on the market when it is released.”

They also explained that Rivian’s plans to delay capital expenditures and build the R2 in an existing plant also appeared beneficial.

However, the positive report came with a warning. The analysts noted that “buying RIVN is risky and a botched midyear re-tooling effort could yet surprise investors negatively.” Still, they said they felt the recent news surrounding the company “should prompt investors to adopt a more bullish stance.”

Shares of Rivian Automotive hit an all-time low last month, and even with Friday’s 3.2% gain to $11.04, they have still lost more than half their value so far in 2024.