Rivian (NASDAQ: RIVN) stock stepped on the bullish pedal Monday. The electrical vehicle (EV) specialist’s share price ended the day’s trading up 3.9%, in accordance with data from S&P Global Market Intelligence.
With its share price down roughly 41% 12 months to this point, Rivian stock has struggled across the primary half of 2024. But some analysts think that the sell-off has turn out to be overblown. Analysts at each RBC Capital and Canaccord raised their price targets on the stock today, and the positive momentum helped power its gains.
RBC Capital takes a neutral stance on Rivian stock
RBC Capital’s Tom Narayan published 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 did raise his one-year price goal from $11 per share to $14 per share. Based on the stock’s closing price today, that reflects an expectation that the EV specialist is accurately valued.
Narayan pointed to the corporate’s take care of Volkswagen providing invaluable liquidity for Rivian’s business and a reinforcing catalyst for its stock. The deal could provide as much as $5 billion in investment capital for Rivian. The analyst also said to search for a possible shift into positive gross margins within the fourth quarter as a crucial indicator for Rivian.
Canaccord Genuity is much more bullish
Within the note it published on Rivian stock today, Canaccord Genuity maintained a buy rating on Rivian stock. More strikingly, the firm raised its one-year price goal on the stock from $20 per share to $30 per share. If the EV specialist were to hit that latest valuation projection, it will suggest upside of roughly 114%.
Canaccord sees Volkswagen’s investment in Rivian as a monumental event. The firm thinks that the market is underestimating the impact of the deal, and its latest price goal points to expectations for a valuation turnaround occurring within the near future.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Volkswagen Ag. The Motley Idiot has a disclosure policy.
Why Rivian Stock Surged Today was originally published by The Motley Idiot