It was a pretty good day to be an electric vehicle stock like Rivian (NASDAQ:RIVN), as analysts at Stifel took a look at the market and passed out some upgrades. Rivian wasn’t the only one to gain here, but it may have come out the best, gaining over 2.5% in Thursday afternoon’s trading session.
The word out of Stifel wasn’t all positive. In fact, Stifel analysts noted that the electric vehicle sector, in general, was facing “stiff headwinds” due to a slew of macroeconomic factors. Growing costs, concerns about range, and a potential recession brewing in the background made people much less likely to spend thousands on an electric car when a gas-powered one would do.
Yet, despite this, Stifel started coverage on Rivian with a Buy rating. Rising brand awareness, a lucrative connection with Amazon for delivery vans, and the ability to replicate that success elsewhere came together to give Rivian its Buy nod, as well as a $23 price target.
Rivian’s Development Doesn’t Hurt Either
All of that is certainly positive for Rivian, but there’s even better news waiting in the wings. Rivian’s Chief Financial Officer, Claire McDonough, let a bit slip about a new battery pack coming to Rivian vehicles in 2024. The new battery pack is said to be simpler than the previous models, and simpler commonly means “less expensive” as well. That, in turn, means potentially lower vehicle prices and more accessibility, a vital point considering how many potential buyers are sidelined due to economic conditions. Rivian also recently set up a deal with Sirius XM (NASDAQ:SIRI) to put its radios in two Rivian models, the R1T and the R1S.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RIVN stock based on 13 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 14.22% loss in its share price over the past year, the average RIVN price target of $25.63 per share implies 35.32% upside potential.
