Needham sees risk/reward on Rivian Automotive as ‘most compelling’

Needham keeps a Buy rating and $31 price target on Rivian while also maintaining the firm’s Conviction List designation following the company’s Q3 delivery numbers and a convertible debt offering that is driving outsize volatility. The stock’s risk/reward is at its most compelling level since the firm introduced coverage in March on the strength of consistent execution in the first half of 2023, a projected strong Q3, and consensus out-year estimates that are not yet reflecting the company’s improved performance, the analyst tells investors in a research note.