Rivian (NASDAQ: RIVN) stocks hit the bullish pedal on Monday. Shares in the electric vehicle (EV) specialist closed the day up 3.9%, according to data from S&P Global Market Intelligence.
With a share price down about 41% so far this year, Rivian stock has struggled in the first half of 2024. But some analysts think the sell-off has become overdone. Analysts at both RBC Capital and Can agree today raised their price targets on the stock and positive momentum has contributed to the gains.
RBC Capital Takes Neutral Stance on Rivian Shares
RBC Capital’s Tom Narayan issued a note on Rivian shares 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 did raise his one-year price target to $14 per share from $11 per share. Based on the stock’s closing price today, that reflects an expectation that the EV specialist is accurately valued.
Narayan pointed out the company’s deal with Volkswagen valuable liquidity for Rivian’s business and a boosting catalyst for its stock. The deal could bring in up to $5 billion in investment capital for Rivian. The analyst also said to look for a potential shift to positive gross margins in the fourth quarter as a key indicator for Rivian.
Canaccord Genuity is much more optimistic
In today’s note on Rivian shares, Canaccord Genuity maintained a Buy rating on Rivian shares. More notably, the firm raised its one-year price target on the stock to $30 per share from $20 per share. If the EV specialist were to hit that new valuation forecast, that would suggest an upside of about 114%.
Canaccord sees Volkswagen’s investment in Rivian as a monumental event. The company believes the market is underestimating the impact of the deal, and the new price target suggests a valuation change 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
