Shares of Rivian Automotive Inc. rallied Friday for an eighth-straight session after Wedbush analyst Dan Ives boosted his stock-price target by 20%, saying he believes the electric-vehicle maker is “finally making a major turn” toward its longer-term business model.
Ives reiterated the outperform rating he’s had on the stock
RIVN,
since it went public, while raising his price target to $30 from $25.
“We believe [that] after a number of ‘one step forward, two steps back’ excuses for Rivian and supply-chain headaches, the company is finally making a major turn towards executing on its longer-term business model,” Ives wrote in a note to clients. “Demand remains firm for the company’s unique EV model lineup while production appears to now be on the road to success as seen with stronger deliveries in [the second quarter].”
Rivian’s stock powered up 14.3% to $24.70, the highest close since Dec. 13, 2022. It has rocketed 83.6% over the past eight days, to match the record eight-day win streak that ended Sept. 14, 2022.
FactSet, MarketWatch
Ives’s raised price target comes after Rivian’s largest shareholder, Amazon.com Inc.
AMZN,
announced earlier this week that it was taking delivery of the first of Rivian’s new electric delivery vans in Europe.
Rivian had also this week reported record second-quarter deliveries that nearly tripled from a year before, with production more than tripling.
“After quarters of disappointing production speed bumps, supplier issues, and what felt like an ongoing agita situation, Rivian now appears to have its production and supply-chain issues well under control with the laser focus on getting deliveries in the hands of eagerly awaiting customers,” Ives wrote.
Ives’s new price target, which implies 21.5% upside from Friday’s closing price, made him the third most bullish on Rivian among the 24 analysts surveyed by FactSet who cover the company.
FactSet
The most bullish were Wolfe Research’s Rod Lache and Canaccord Genuity’s George Gianarikas, who both had $40 price targets on the stock.
Fourteen analysts were bullish on Rivian, eight were neutral, and two were bearish, according to FactSet. The average stock-price target was $23.55.
Rivian’s stock has run up 70.7% over the past three months, while the Global X Autonomous and Electric Vehicles exchange-traded fund
DRIV,
has advanced 15.1% and the S&P 500 index
SPX,
has gained 7.2%.