Rivian Stock Is Rallying Monday: What's Driving The Action?

Rivian Automotive Inc RIVN shares are trading higher Monday after multiple analysts raised their price targets on the EV stock.

• Barclays analyst Dan Levy maintained Rivian with an Equal-Weight and raised the price target from $10 to $14.

• Canaccord Genuity analyst George Gianarikas maintained Rivian with a Buy and raised the price target from $20 to $30.

• RBC Capital analyst Tom Narayan maintained Rivian with a Sector Perform and raised the price target from $11 to $14.

• Goldman Sachs analyst Mark Delaney maintained Rivian with a Neutral and raised the price target from $11 to $14.

What To Know: In a new note to clients on Monday, Goldman’s Delaney provided key takeaways from Rivian’s investor day last week.

The analyst highlighted multiple product and technology updates that simplify the manufacturing process and help to reduce costs. Delaney also noted that Rivian provided preliminary second-quarter production guidance of 9,100 to 9,300 units and reiterated 2024 guidance of approximately 57,000 units.

Rivan also reaffirmed that it’s still on track to achieve positive adjusted gross profit in the fourth quarter. The Goldman Sachs analyst said management remains confident in its forecast given strong community engagement and receptivity to the brand, design and features.

“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),” Delaney said.

Rivian’s R1 platform is expected to benefit from scale over time. The company also expects to leverage its improved sourcing position to drive variable cost improvements, the analyst said.

Cantor Fitzgerald analyst Andres Sheppard also provided some takeaways from Rivian’s investor day in a note focused on mobility on Monday. The analyst increased his price target to $19 citing benefits from the company’s recently announced joint venture with Volkswagen.

Volkswagen will initially invest $1 billion in Rivian through an unsecured convertible note that will be converted into Rivian common stock. The German automaker is expected to invest an additional $4 billion over time as part of the transaction.

“As a result of this agreement, we think Rivian will be able to extend its cash runway, to achieve additional cost savings, and to improve its margin profile over the medium-to-long term,” Sheppard said.

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RIVN Price Action: Rivian shares were up 4.14% at $13.98 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Rivian.