Rivian stock recovers on Monday: What’s behind it? – Rivian Automotive (NASDAQ:RIVN)

Rivian Automotive Inc RIVN Shares are trading higher on Monday after several analysts raised their price targets on the EV stock.

• Barclays analyst Dan Levy maintained an equal-weight rating on Rivian and raised the price target from $10 to $14.

• George Gianarikas, analyst at Canaccord Genuity, maintained his buy rating for Rivian and raised the price target from $20 to $30.

• RBC Capital analyst Tom Narayan maintained a “Sector Perform” rating for Rivian and raised the price target from $11 to $14.

• Goldman Sachs analyst Mark Delaney maintained a “neutral” rating for Rivian and raised the price target from $11 to $14.

What you should know: In a new note to clients on Monday, Goldman’s Delaney provided key insights from Rivian’s investor day last week.

The analyst highlighted several product and technology updates that simplify the manufacturing process and help reduce costs. Delaney also noted that Rivian provided preliminary second-quarter production guidance of 9,100 to 9,300 units and reiterated 2024 guidance of about 57,000 units.

Rivan also reiterated that the company remains on track to deliver positive adjusted gross profit in the fourth quarter. The Goldman Sachs analyst said management remains confident in its guidance given the strong community engagement and acceptance of the brand, design and features.

“Rivian also discussed the profitability of the R1 platform. Management commented that it expects the R1 platform’s RPU to see a slight increase with a mix of more premium configurations (the quad-motor configuration will be introduced in Q4 2024),” Delaney said.

Rivian is expected to benefit from scaling its R1 platform over time. The company also expects to leverage its improved procurement position to drive improvements in variable costs, the analyst said.

Cantor Fitzgerald analyst Andres Sheppard also provided some insights from Rivian’s investor day in a mobility note on Monday. The analyst raised his price target to $19, citing the benefits of the company’s recently announced joint venture with Volkswagen.

Volkswagen will initially invest $1 billion in Rivian through an unsecured convertible note that will convert into Rivian common stock. The German automaker is expected to invest an additional $4 billion over time as part of the deal.

“We believe this agreement will enable Rivian to increase its liquidity reserves, realize additional cost savings and improve its margin profile over the medium to long term,” Sheppard said.

Check this out: Rivian Automotive and Carvana were among the top 10 large-cap gainers last week (June 23-29): Are these in your portfolio?

RIVN price promotion: According to Benzinga Pro, Rivian shares rose 4.14% to $13.98 at the time of publication.

Photo: Courtesy of Rivian.