Rivian Automotive price target raised to $17 from $13 at Morgan Stanley

Morgan Stanley analyst Adam Jonas raised the firm’s price target on Rivian Automotive (RIVN) to $17 from $13 and keeps an Overweight rating on the shares. Cash from the Volkswagen (VWAGY) deal should reduce near term volatility in the stock, but it doesn’t change the firm’s view that Rivian may have a better future as a Tier 1 supplier “tech partner” than as a stand-alone maker of electric vehicles, the analyst tells investors. The firm assumes FY25 positive gross margin of just over 7% and first positive EBITDA by FY27, in line with management guidance, the analyst noted.