Rivian (NASDAQ: RIVN) The stock put its foot down on the bullish pedal on Monday. The electric vehicle (EV) specialist’s share price ended the day up 3.9%, according to data from S&P Global Markets Insights.
With its share price down about 41% year-to-date, Rivian’s stock has struggled in the first half of 2024. But some analysts believe the sell-off has become overdone. Analysts at RBC Capital and Canaccord Investors raised their price targets on the stock today, and positive momentum helped fuel its gains.
RBC Capital adopts neutral stance on Rivian stock
RBC Capital’s Tom Narayan issued a note on Rivian stock before the market opened this morning, maintaining a Sector Perform rating on the stock. While the analyst maintained his overall rating on the stock, he raised his one-year price target to $14 per share from $11 per share. Based on the stock’s closing price today, that reflects the expectation that the electric vehicle specialist is fairly valued.
Narayan highlighted the company’s agreement with Volkswagen would provide valuable liquidity for Rivian’s business and a strengthening catalyst for its stock. The deal could provide up to $5 billion in investment capital for Rivian. The analyst also said a potential shift to a positive outlook is to be expected gross margins in the fourth quarter as an important indicator for Rivian.
Canaccord Genuity is much more optimistic
In today’s note on Rivian, Canaccord Genuity maintained its Buy rating on Rivian. More strikingly, the firm raised its one-year price target on the stock to $30 per share from $20. If the electric vehicle specialist were to achieve this new valuation projection, it would suggest an upside of about 114%.
Canaccord views Volkswagen’s investment in Rivian as a monumental event. The firm believes the market is underestimating the impact of the deal and its new price target suggests a valuation turnaround in the near future.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
Why Rivian Stock Soared Today was originally published by The Motley Fool
