Rivian Automotive Inc (NASDAQ:RIVN) shares are pushing higher Monday after Piper Sandler shifted its view on the electric vehicle maker from neutral to bullish.
- Rivian Automotive stock is charging ahead with explosive momentum. What’s fueling RIVN momentum?
Piper Sandler Upgrades to Overweight Citing a De-Risked Setup
Piper Sandler’s Alexander Potter adjusted his rating on Rivian to Overweight from Neutral Monday and pushed the price objective to $20 from $18, a target built on a discounted cash flow framework that implies roughly 26% appreciation from where the stock currently trades. Potter said three distinct changes in the company’s situation warranted a fresh look and a more constructive outlook.
The first shift is on the demand side. Rivian lifted its delivery guidance, and Potter attributed part of that confidence to a renewed wave of consumer interest in electric vehicles driven by elevated fuel costs at the pump, a macro tailwind arriving at a moment the company can put to good use.
The second development centers on the R2 SUV, the product many consider pivotal to Rivian’s next growth chapter. Potter said the early stages of the R2 ramp appear to be unfolding without the execution stumbles that have historically disrupted new electric vehicle launches, a cleaner start than many had feared and one that removes a meaningful overhang from the investment case.
The third factor is financial. A capital raise completed recently has strengthened Rivian’s balance sheet in a way that Potter said should support the company’s growth plans without forcing the kind of heavy dilution that had been weighing on shareholder sentiment. Potter stated production volumes position the company to extract more value from its software and services offerings over time, a higher-margin layer of the business that becomes increasingly important as the vehicle fleet expands.
RIVN Shares Are Popping
RIVN Price Action: Rivian shares were up 4.99% at $16.64 at the time of publication on Monday, according to Benzinga Pro.
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