Shares of Rivian Automotive Inc. experienced a rally on Wednesday, driven by increased optimism from Mizuho analyst Vijay Rakesh. Rakesh, reaffirming his buy rating on Rivian's stock, raised his price target by 11% to $30 from $27.

This positive update comes after Rivian's stock rose 1.6% in premarket trading, building on a 2.9% gain on Tuesday. The company's stock had previously endured a three-session losing streak.

Rakesh based his bullish outlook on Rivian's strong second-quarter deliveries report and the overall momentum observed in electric vehicle (EV) sales within the industry. He believes that Rivian has been executing its production ramps effectively and anticipates that the company could exceed its 50,000 delivery estimate for 2023.

“In light of a promising start to the year, we anticipate strong auto sales momentum, particularly within the EV sector, despite challenges stemming from a stretched consumer base and high interest rates," Rakesh explained in a note to clients.

With his new price target of $30, Rakesh now ties with two other analysts for the second-highest price target among the 24 analysts surveyed by FactSet that cover Rivian. FactSet data reveals that the most bullish analyst is George Gianarikas from Canaccord Genuity, who maintains a price target of $40.

Among the surveyed analysts, 14 indicate a bullish sentiment towards Rivian, while nine are neutral and only one is bearish.

In addition to his comments on Rivian, Rakesh also adjusted his stock price target for General Motors Co. (GM). While recognizing GM as a growing player in the EV space, he expressed concerns regarding margin headwinds during the company's transition from internal combustion engine (ICE) autos to EVs. Despite raising his price target for GM to $40 from $30, Rakesh maintained a neutral rating on the automaker.

Over the past three months, Rivian's stock has skyrocketed by 92.6%, while GM shares have gained 13.2%. In comparison, the Global X Autonomous and Electric Vehicles exchange-traded fund has advanced 19.1% during the same period, while the S&P 500 index has accumulated a 9.6% increase.

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