Rivian Stock Price Predictions: Did Credit Suisse Really Just Endorse RIVN?

Shares of Rivian (NASDAQ:RIVN) are bouncing back today, and in a big way. At the time of writing, RIVN stock is up over 11%. However, uncertainty still remains for the electric vehicle (EV) maker, as shares are still down over 35% year-to-date. While it remains unknown whether the bottom is in for Rivian, an EV competitor earned an upgrade today from Credit Suisse. As a result, shares of Rivian are trading higher in sympathy amid a strong overall market day.

The back of a silver Rivian (RIVN) pick-up truck.
Source: Miro Vrlik Photography / Shutterstock.com

Tesla Upgraded to Outperform By Credit Suisse

Today, Credit Suisse analyst Dan Levy upgraded Tesla (NASDAQ:TSLA) to outperform with a $1,025 price target. While Credit Suisse touted Tesla’s EV leadership position, and “sustained margin strength,” one statement really stuck out to Rivian shareholders. Levy explained that Tesla does not have to tackle challenges related to legacy automakers, such as switching costs from gasoline vehicles to EVs. Accordingly, as a pure-play EV company, Rivian will not have to face these challenges either. The analyst also highlighted that the transition from internal combustion engine (ICE) vehicles to EVs is well underway, which should benefit Rivian as well.

With that said, let’s take a look at Wall Street’s expectations for RIVN stock.

Rivian Stock Price Predictions: What’s Next for RIVN?

  • Mizuho has a price target of $145. Analyst Vijay Rakesh noted the departure of COO Rod Coates last month. However, Rakesh explained that Coates’ departure “had been planned for some time,” so it should not materially affect Rivian. Upon hearing the news, Rakesh maintained his $145 price target. Furthermore, Rakesh believes Rivian remains a viable investment and expects Rivian “to progress to the next stage of its global expansion runway as it looks to Europe and scales its manufacturing.”
  • Redburn has a price target of $141. Analyst Charles Coldicutt believes that Rivian can sell 1.5 million units by 2030, which would represent revenue of $78 billion. Furthermore, Coldicutt claims that Rivian’s “industry-leading technology” over traditional automakers should “leave an indelible mark on the automotive industry over the next decade.”
  • Wolfe Research has a price target of $130. Analyst Rod Lache admits that he hasn’t seen such a “strong bench at a startup OEM” since the “formative days” of Tesla. In addition, Lache believes that Rivian’s competencies “[extend] well beyond design, vehicle engineering, and manufacturing, to EV drivelines, batteries, software, artificial intelligence, and compute.” The analyst believes that these competencies will be critical in order for Rivian to succeed.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/rivian-stock-price-predictions-did-credit-suisse-really-just-endorse-rivn/.

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