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Fintel reports that on July 11, 2023, JMP Securities reiterated coverage of Amazon.com (NASDAQ:AMZN) with a Market Outperform recommendation. Analyst Price Forecast Suggests 12.53% Upside
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On July 10, 2023 at 10:49:14 ET an unusually large $10,190.20K block of Put contracts in Amazon.com (AMZN) was sold, with a strike price of $150.00 / share, expiring in 893 day(s) (on December 19, 2025). Fintel tracks all large options trades, and the premium spent on this trade
On July 10, 2023 at 10:49:14 ET an unusually large $2,189.25K block of Put contracts in Amazon.com (AMZN) was sold, with a strike price of $100.00 / share, expiring in 557 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade w
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Are you feeling hopeless about Rivian Automotive (
NASDAQ:RIVN
) stock? Don't despair, as there's hope on the horizon for weary shareholders. I am bullish on RIVN stock in light of a spate of analyst price-target hikes as well as Rivian's positive vehicle-production data.
Rivian Automotive is an
electric vehicle (EV) manufacturing start-up that enjoyed the spotlight when the company went public a couple of years ago but then quickly fell out of favor. It certainly didn't help Rivian's shareholders when the Federal Reserve enacted a series of interest-rate hikes, causing many of 2021's high flyers to run out of steam in 2022.
At long last, however, Wall Street's experts and amateurs alike are cheering Rivian Automotive's return to glory. I'll admit, the enthusiasm is infectious, and it's hard not to root for Rivian as the underdog automaker sets out on a long, challenging road to recovery.
Rivian Has a Famous Friend in Europe
Can you imagine a better way for Rivian Automotive to expand its operations into Europe than by teaming up with e-commerce giant Amazon (
NASDAQ:AMZN
)? That's certainly a best-case scenario, as Rivian recently
rolled out more than 300 electric vans in Germany, specifically for Amazon.
This could just be a small part of something much bigger, however. As
Reuters reported, Amazon previously disclosed an order for Rivian Automotive to deliver 100,000 vehicles. That's the number of Rivian-produced electric delivery vans that Amazon aims to have in its global fleet by the year 2030.
This arrangement has "win-win" written all over it. Amazon is wisely seeking compliance with Europe's clean-energy rules. At the same time, it's encouraging that Amazon selected Rivian to build out its delivery-vehicle fleet. Surely, this wasn't a decision that Amazon's management took lightly. They wouldn't have picked Rivian Automotive if they thought the automaker was going to file for Chapter 11 bankruptcy in the next couple of years.
Most likely, D. A. Davidson analyst
Michael Shlisky had these considerations in mind when he
upgraded RIVN stock from a Hold to a Buy and raised his price target from $11 to $18. Shlisky took note of Rivian's "imminent entry into Europe with its delivery van," commenting that this event "was expected eventually, but far earlier than we anticipated."
Rivian Gets Price-Target Hikes - and for Good Reasons
As we'll discuss in a moment, Shlisky isn't the only expert on Wall Street who recently upgraded RIVN stock and/or lifted his or her price target on the shares. Overall, analysts seem fairly confident about Rivian Automotive's future prospects, especially since the company has Amazon as a major customer.
Besides, that's not the only piece of good news pertaining to Rivian. Not long ago, the company disclosed some crucial operational data for 2023's second quarter. Earlier, Rivian Automotive set a goal of producing 50,000 EVs this year, and it looks like the automaker is on track to achieve that objective.
Here's the rundown of the relevant data points. During Q2 2023, Rivian Automotive produced 13,992 vehicles. That's a good number if the company is targeting 50,000 for the year. Moreover, Rivian delivered 12,640 vehicles during the quarter, which indicates a decent delivery-to-production ratio (around 90%).
With those figures being top-of-mind, it's understandable if analysts are leaning bullish now. Along with Shlisky's aforementioned upgrade, there's
George Gianarikas of Canaccord Genuity, who
rated RIVN shares a Buy and assigned a highly ambitious $40 price target.
Then, there's the well-known Wedbush analyst
Daniel Ives, who
hiked his price target on RIVN stock from $25 to $30 and reaffirmed his Buy rating on the shares. Additionally, Needham analyst
Chris Pierce
raised his price target on Rivian Automotive stock from $26 to $28 and, like Ives, reiterated his Buy rating on RIVN shares.
What's the Consensus Price Target for RIVN Stock?
On TipRanks, RIVN stock comes in as a Moderate Buy based on 10 Buys, five Holds, and one Sell rating assigned by analysts in the past three months. The average
Rivian Automotive price target is $23.50, implying 7.9% downside potential.
If you’re wondering which analyst you should follow if you want to buy and sell RIVN stock, the most profitable analyst covering the stock (on a one-year timeframe) is
Jordan Levy of Truist Financial, with an average return of 19.34% per rating. Click on the image below to learn more.
Conclusion: Should You Consider RIVN Stock?
After a bruising 2022, Rivian is riveting in 2023, and the tide of sentiment is finally turning in the company's favor. I don't think this is a short-term shift since there are specific reasons to feel optimistic about Rivian Automotive's future prospects.
Nevertheless, Rivian will continue to face challenges, such as working toward a profitable profile. That's easier said than done, but at least it seems within reach for Rivian Automotive. So, I feel it's not a bad idea to maintain a small share position in RIVN stock as long as you're prepared for what could be a thrilling ride.
Disclosure
The NASDAQ 100 After Hours Indicator is up 3.09 to 15,048.73. The total After hours volume is currently 79,924,723 shares traded.The following are the most active stocks for the after hours session: Invesco QQQ Trust, Series 1 (QQQ) is +0.34 at $366.70, with 3,499,224 shares tra