Rivian Automotive (NASDAQ: RIVN) stock rose during intraday trading Monday after multiple analysts raised their price targets on the EV stock.
Barclays, Canaccord Genuity, RBC Capital, and Goldman Sachs analysts have weighed in on electric vehicle manufacturer Rivian following its recent investor day and the announcement of a joint venture with Volkswagen.
Barclays analyst Dan Levy maintained an equal weight rating on Rivian but raised the price target from $10 to $14. Meanwhile, Canaccord Genuity’s George Gianarikas reiterated a Buy rating and increased the price target from $20 to $30.
RBC Capital analyst Tom Narayan reaffirmed a Sector Perform rating and increased the price target from $11 to $14. Also, Goldman Sachs analyst Mark Delaney boosted the price target from $11 to $14 while maintaining a Neutral rating.
Insights from Goldman Sachs
In a new note to clients on Monday, Goldman Sachs analyst Mark Delaney provided key insights from Rivian’s investor day. He highlighted multiple product and technology updates to simplify manufacturing and reduce costs. Delaney also noted Rivian’s preliminary second-quarter production guidance of 9,100 to 9,300 units and said the company provided 2024 guidance of approximately 57,000 units.
Rivian (NASDAQ: RIVN) also reaffirmed its goal to achieve positive adjusted gross profit in the fourth quarter. The Goldman Sachs analyst emphasized management’s confidence in its forecast, citing strong community engagement and positive reception of the brand, design, and features.
Delaney said,
“Rivian also discussed R1 platform profitability. Management commented that it expects the R1 platform RPU to see a slight increase with more premium configurations mix (Quad motor configuration is launching in 4Q24).”
The analyst expects the company to benefit from scale over time and leveraging an improved sourcing position to drive variable cost improvements.
Cantor Fitzgerald Analyst Insights
In addition, Cantor Fitzgerald analyst Andres Sheppard shared takeaways from Rivian’s investor day in a mobility-focused note on Monday, increasing his price target to $19.
Sheppard pointed out benefits from Rivian’s recently announced joint venture with Volkswagen. The German automaker will initially invest $1 billion in Rivian through an unsecured convertible note, which will be converted into Rivian common stock. Volkswagen plans to invest an additional $4 billion over time as part of the deal.
Sheppard believes this agreement will extend Rivian’s cash runway, achieve additional cost savings, and improve its margin profile over the medium-to-long term.
Rivian (NASDAQ: RIVN) Stock Price Action
RIVN stock jumped 3.73% on Monday, closing at $13.92, marking a 26.43% increase for the week. The trading volume was 74,020,632 shares, significantly higher than the average daily volume of 43.76 million.
