Shares of Rivian automotive industry (NASDAQ: RIVN) were trading sharply higher on Monday after a Wall Street analyst drew attention to the stock with a strong recommendation.
As of noon ET, Rivian shares were up about 12.1% from Friday’s closing price.
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In a new note on Monday, Benchmark initiated coverage of Rivian with a buy rating and a price target of $18, about 38.5% above Friday’s closing price.
According to reports, the company believes Rivian is “well positioned” to capture a significant share of the “massive” emerging opportunities for electric vehicles (EVs) in the next ten years. Benchmark believes that U.S. electric vehicle production will pick up in 2025 and accelerate in 2026 and 2027 as more charging infrastructure is built and average EV sales prices continue to decline.
Benchmark likes Rivian because of its still substantial cash position and the contracts with Rivian Amazon And Volkswagenand Rivian’s expectation that the company will post positive gross product for the current quarter.
Rivian is of course still an emerging automaker. But Consumer Reports said late last week that despite less-than-optimal quality, Rivian was satisfied with owners highest among the 27 car brands included in the most recent ranking.
That’s another sign that Rivian is likely to stick around – and likely to continue to grow as electric car adoption increases.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Rosevear has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
Why Rivian Stock Is Soaring Higher Today was originally published by The Motley Fool
