It has been a good day for Rivian (NASADQ:RIVN) for a few reasons. One of the most important is a new endorsement RIVN stock received from Wall Street.
Yesterday, Jefferies analyst Philippe Houchois issued a bullish $16 price target for RIVN stock and initiated a “buy” rating. As bearish sentiment toward the electric vehicle (EV) producer has been rising lately amid declining share prices, this positive take comes at an excellent time for shares. Houchois sees Rivian as “leading sustainability and environmental credentials” but added that the company will face tests in 2024.
Even so, Houchois sees upside potential of around 28% for RIVN stock. His bullish take is also setting a positive tone as Rivian begins to slowly make up the ground it lost in 2023. If this sentiment from Wall Street continues, it could easily usher in the turnaround investors have been waiting for.
What’s Happening With RIVN Stock?
This positive price prediction has helped RIVN stock rise today. Indeed, shares closed up by more than 13% on Thursday. Despite taking a significant dive in February, this former EV winner has performed well this week, demonstrating an impressive resilience.
Jefferies’ take isn’t the only thing pushing RIVN up today, though. Rivian revealed its new R2 SUV this afternoon, catching the attention of many EV enthusiasts in the process.
With a starting price of $45,000 and 330 miles of range, Rivian’s newest addition comes at an excellent time. The global EV market is expected to slow this year. Therefore, doubling down on lower-cost vehicles is a sound growth strategy. After years of building highly priced electric trucks and SUVs, Rivian has recognized the need to appeal to consumers with lower budgets. This sets the company up to expand its share of the EV market — even as competition continues to rise.
What Comes Next?
Houchois isn’t the only expert who sees RIVN stock as a 2024 winner. Earlier this week, analyst Ben Kallo of Robert W. Baird issued a bullish take, rating shares as a “buy” and citing the R2 platform as a likely growth catalyst. Kallo’s $23 price target implies upside potential of more than 80%.
That target may strike some as high, but it’s clear that Rivian’s new platform has the potential to turn things around this year. The company has been a dominant EV player before and, as of now, it seems like it can regain momentum.
Moving forward, investors should keep a close eye on RIVN stock and be careful to sift through the negative sentiment that has followed shares lately.
On the date of publication, Samuel O’Brient 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.
