Rivian Automotive (NASDAQ:RIVN) stock is up on Wednesday and Cantor Fitzgerald has increased its price target for the electric vehicle (EV) company’s shares.
This has Cantor Fitzgerald analyst Andres Sheppard increasing the firm’s price target for RIVN stock from $15 to $19 per share. That’s close to the analyst consensus price prediction of $19.04 per share for RIVN.
The Cantor Fitzgerald analyst also continues to maintain an “overweight” rating for RIVN stock. For comparison, the analyst consensus rating is a moderate buy based on 25 opinions.
What’s Behind the New RIVN Stock Praise?
Sheppard highlights a new collaboration deal signed between Rivian and Volkswagen (OTCMKTS:VWAGY) as the reason for the increased price target. This has Volkswagen investing up to $5 billion in Rivian. This comes from an initial $1 billion investment and two $2 billion investments coming in 2025 and 2026.
Here’s what the Cantor Fitzgerald analyst said about this news:
“As a result of this agreement, we expect Rivian will be able to extend its cash runway, to achieve additional cost savings, and to improve its margin profile over the medium to long term, and therefore we are increasing our PT to $19 (from $15).”
RIVN stock is up 27.3% as of Wednesday morning.
Investors will find more of the most recent stock market stories today below!
We have all of the hottest stock market news ready to go for Wednesday! Among that is a new price target for Nvidia (NASDAQ:NVDA) stock, more details on the RIVN deal and more. All of this news is available at the following links!
More Wednesday Stock Market News
- Citi Just Raised Its Price Target on Nvidia (NVDA) Stock
- Rivian (RIVN) Stock Just Got a Jumbo Boost From $5 Billion Volkswagen Deal
- Trade of the Day: ChargePoint (CHPT) Stock Is the Winner of the Rivian-Volkswagen Deal
On the date of publication, William White 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.
