Electric vehicle (EV) company Rivian — which had a blockbuster IPO in November but has since been struggling with supply chain issues and chip shortages — saw its stock rise on May 31 following a bullish analyst note.
By Yaёl Bizouati-Kennedy
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Mizuho analyst Vijay Rakesh said that current prices were a “good entry point” for Rivian stock following an event with Rivian CFO Claire McDonough, Barron’s reported.
Rakesh said that production is improving, thanks to shifts being added — notably at Rivian’s Illinois plant, per Barron’s. He has a Buy opinion on the stock, with a $80 price target.
Rivian stock is down 69.4% year-to-date, and up 0.7% in pre-market trading on June 1.
Barron’s reports that 65% of analysts covering the stock have a Buy opinion.
Wedbush Securities analyst Dan Ives also has an Outperfrom rating on the stock, despite some earlier skepticism. Ives said that while the past quarter was not without issues for the EV manufacturer, it does finally appear that Rivian is on the right track, showing strong demand and a supply chain that should produce 25,000 deliveries this year.
Analyst Echoes Bullish Sentiment on Rivian
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“For investors, the question is valuation. The company has a market cap of about $28 billion, and there are near-term headwinds that include supply chain challenges and increasing input costs,” Smith said. “So there is already solid execution built into the stock price. But the company has the pieces in place for long-term success if it can navigate the short-term challenges. There’s no guarantee that it will, but for investors wanting exposure to the EV sector with a long-term time horizon, Rivian looks to be a solid option right now.”
