Rivian Share Price Forecast: Did Credit Suisse Really Just Approve RIVN?

Shares of Rivian (NASDAQ:BANK) are bouncing back today, and in a big way. At the time of writing, RIVN stock is up over 11%. However, uncertainty remains for the electric vehicle (EV) maker, as shares are still down more than 35% year-to-date. While it’s unclear if Rivian has bottomed out, an EV competitor got an upgrade today from Swiss credit. As a result, Rivian shares are trading more sympathetically amid a strong overall market day.

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Tesla upgraded to outperform by Credit Suisse

Today, Credit Suisse analyst Dan Levy updated You’re here (NASDAQ:TSLA) to outperform with a price target of $1,025. While Credit Suisse touted Tesla’s leadership position in electric vehicles and “sustained margin strength,” one statement really caught the attention of Rivian shareholders. Levy explained that Tesla doesn’t have to deal with the challenges of traditional automakers, such as the cost shift from gas-powered vehicles to electric vehicles. As a result, as a pure-play electric vehicle company, Rivian won’t have to deal with these challenges either. The analyst also pointed out that the transition from internal combustion engine (ICE) vehicles to electric vehicles is well underway, which should also benefit Rivian.

That said, let’s take a look at Wall Street’s expectations for RIVN stock.

Rivian stock price predictions: what’s next for RIVN?

  • Mizuho has a target price of $145. Analyst Vijay Rakesh noted the departure of COO Rod Coates last month. However, Rakesh explained that Coates’ departure “has been planned for some time”, so it shouldn’t affect Rivian materially. Upon hearing the news, Rakesh maintained his price target of $145. Additionally, Rakesh believes Rivian remains a viable investment and expects Rivian to “take the next step on its global expansion track as it looks to Europe and expands its manufacturing.”
  • Redburn has a target price of $141. Analyst Charles Coldicutt estimates Rivian can sell 1.5 million units by 2030, which would represent $78 billion in revenue. Additionally, Coldicutt says Rivian’s “advanced technology” compared to traditional automakers is expected to “leave an indelible mark on the automotive industry for the next decade.”
  • Wolfe Research has a target price of $130. Analyst Rod Lache admits he hasn’t seen such a “strong bench at a start-up OEM” since Tesla’s “formative days.” Additionally, Lache believes that Rivian’s skills “[extend] far beyond vehicle design, engineering and manufacturing, to powertrains, batteries, software, artificial intelligence and electric vehicle computing. The analyst believes that these skills will be essential for Rivian to succeed.

At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

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