Rivian Automotive (NASDAQ:RIVN) stock is in the news Tuesday after analysts at UBS upgraded the electric vehicle (EV) company’s shares.
That upgrade has UBS analyst Joseph Spak increasing RIVN stock from a “neutral” rating to a “buy” rating. To put that in perspective, the analysts’ consensus rating for RIVN shares is a moderate buy based on 20 opinions.
Despite that new buy rating, shares of RIVN stock received a price target cut from UBS. The firm dropped its price prediction for RIVN from $26 per share to $24 per share. However, that’s still a potential upside of about 27%, even if it’s lower than the analysts’ consensus price target of $29.30 per share.
What’s Behind the RIVN Stock Upgrade?
Spak said the following about Rivian Automotive in a note to clients obtained by CNBC:
“While we continue to believe 2024 quarterly production/deliveries can be lumpy owing to plant re-rating, the lower stock price de-risks some of our concerns. We still believe positive gross margin in 4Q24 is likely and a catalyst.”
Other positives for RIVN stock noted by the UBS analyst include improving fundamentals, reduced chance of a capital raise in 2024, 2023 production of 54,500 units and potential from upcoming products.
RIVN stock is up 3.1% as of Tuesday morning, alongside the analyst upgrade. This comes as some 1.2 million shares trade hands, as compared to a daily average of 44 million shares.
Investors looking for even more of the most recent stock market stories for Tuesday will want to stick around!
We’re offering all of the hottest stock market news traders need to know about today! Among that is what has shares of NuCana (NASDAQ:NCNA), Borqs Technologies (NASDAQ:BRQS) and Mobilicom (NASDAQ:MOB) stock moving today. All of that news is ready to go at the links below!
More Tuesday Stock Market News
- Why Is NuCana (NCNA) Stock Down Today?
- Why Is Borqs Technologies (BRQS) Stock Down 8% Today?
- Why Is Mobilicom (MOB) Stock Up 49% Today?
On the date of publication, William White did not have (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.
