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LivestreamMenuRivian is well-positioned to win in a future dominated by robotaxis, and that’s a reason to buy the stock now, according to Piper Sandler. The investment firm upgraded shares of the electric vehicle manufacturer to overweight from neutral. It also raised its price target to $20, which indicates a 26% gain from Friday’s close. Analyst Alexander Potter wrote in a Monday note that three key things have changed for Rivian that made him rethink his outlook for the company’s shares. “First, RIVN boosted delivery guidance, thanks in part to expensive gasoline and a renewed interest in EVs,” Potter wrote. “Second, Rivian has apparently avoided launch issues with the R2 SUV, a pivotal new product. Finally, a recent capital raise should fund growth while reducing dilution risk.” RIVN YTD mountain Rivian year-to-date. Potter added that to succeed in a world where robotaxis and humanoid robots are the future, vertical integration will be key as supply chains to move the materials and goods required don’t exist at the moment. He pointed to the company’s designing of in-house electronic control units and printed circuit boards, two critical systems for vehicles, which he thinks puts the company on track to be a power player in the future environment and in a strong position to develop autonomous vehicles. And its in-house designs will likely mean it can add to its revenues in the future too. “As volume rises, Rivian should be better able to monetize software & services, a key benefit of vertical integration,” Potter wrote. Shares rose more than 2% following the rating change. Analysts are split when it comes to Rivian. Of the 28 who cover it, 14 rate it a buy or strong buy, per LSEG. Another nine assigned a hold rating on the stock, while the remaining five rate it as underperform or sell.Read More
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