Needham analyst Chris Pierce reiterated a Buy rating on Rivian Automotive today and set a price target of $14.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Rivian Automotive’s potential for growth. The analyst is optimistic about the adoption of Rivian’s R2 model, which is expected to expand the total addressable market significantly by 2026. This expansion is anticipated to mitigate any downside risks to consensus estimates, making the stock an attractive buy.
Furthermore, Chris Pierce sees the development of autonomous driving technology as a promising trend for Rivian. The upcoming Autonomy event is expected to showcase Rivian’s advancements, positioning the R2 model favorably in the market. Despite concerns about the slower adoption rate of electric vehicles, Pierce believes there is still substantial room for growth, especially in regions with high EV penetration where gasoline vehicles remain prevalent. The $14 price target reflects a valuation of 15 times the expected adjusted EBITDA for 2028, underscoring the long-term growth potential of Rivian Automotive.