EV manufacturer Rivian (NASDAQ: RIVN) was up in trading on Tuesday after it was upgraded by UBS analyst Joseph Spak from Hold to Buy. The analyst sees a buying opportunity in the stock’s dip as it has slid by more than 15% in the past month. Spak also approved of the company’s $1.5 billion convertible note offering.
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The analyst was optimistic about the company’s improving fundamentals and cited reduced concerns about production. Spak believes that Rivian is burning cash at a slower rate and anticipates a positive gross margin in Q4 2024, which could prove to be a catalyst for the stock.
However, he lowered the price target to $24 from $26, thus implying an upside potential of 23.3% from current levels.
Is Rivian a Buy, Sell, or Hold?
Overall, analysts are cautiously optimistic about RIVN stock with a Moderate Buy consensus rating based on 14 Buys, six Holds, and one Sell.