Benzinga - by Shanthi Rexaline, Benzinga Editor.
Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) rose sharply in premarket trading, reversing some of the downward move they witnessed in recent sessions.
Close on the heels of Wedbush analyst Daniel Ives reducing the price target for the stock from $32 to $25, two other sell-side analysts have expressed their bullishness on the stock.
UBS analyst Joseph Spak upgraded Rivian stock from Neutral to Buy while nudging down the price target from $26 to $24. The bullish call is based on the recent weakness in the stock, which renders valuation attractive, CNBC reported. Additionally, the analyst said with the capital raise in the rearview, the market will focus on improving fundamentals.
Rivian stock came under pressure recently after it announced a $1.5 billion convertible, senior green note offering, and preannounced third-quarter revenue in line with the consensus estimate.
Separately, Needham analyst Chris Pierce reiterated a Buy rating and $31 price target for Rivian shares. The analyst also reiterated Rivian as a “Needham Conviction” List pick.
“In our view, the stock’s risk/reward is at its most compelling level since we introduced coverage in March on the strength of consistent execution in 1H23, a projected strong 3Q23, and consensus out-year estimates not yet reflecting improved performance,” the analyst said.
Pierce noted that Rivian has outperformed peers in Needham’s electric vehicle used vehicle tracker, which is considered a bullish signal for new vehicle demand.
In premarket trading on Tuesday, Rivian climbed 3.62% to $19.46, according to Benzinga Pro data.
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