Sunday, 1 October 2023

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Rivian (NASDAQ:RIVN) Slips despite Analyst Optimism – TipRanks Financial Blog

Rivian (NASDAQ:RIVN) Slips despite Analyst Optimism – TipRanks Financial Blog

Rivian (NASDAQ:RIVN) is a growing proposition in electric vehicle stocks. But with already-established major players in place like Tesla (NASDAQ:TSLA) and the legacy automakers stepping up, does it have much hope? Analysts are increasingly coming around after Rivian revealed that its positive trend on margins should continue, though investors pulled out sufficiently to drop Rivian fractionally in Monday morning’s trading session.

Morgan Stanley analyst Adam Jonas noted that what Rivian learned in R1 will help drive performance in R2. As it builds on what it’s already done, and takes advantage of the growing brand recognition Rivian enjoys in the market space, the end result should be positive overall. Throw in continuing improvements in manufacturing and that should only help the gross margin from there. Plus, Rivian is also pulling together a set of new features that should catch the interest of potential buyers.

Already, Rivian’s registrations in the United States are on the rise, as it’s eighth in terms of registrations from January to July, according to Experian data. In July alone, Rivian saw 2,750 registrations, which was solidly above the monthly average of 2,596 recorded so far this year. By way of comparison, the Ford F-150 Lightning got 11,883 registrations through July. But Rivian’s not done yet; it recently put out an over-the-air update geared toward improving ride comfort. The update, version 2023.34.0, delivers a greater balance between ride and handling for vehicles in Sport Mode. All-Purpose Soft Ride Mode users, meanwhile, get improved comfort overall through a reduced “abruptness” in suspension response.

Analysts, meanwhile, are largely on Rivian’s side. With 12 Buy ratings, seven Holds and one Sell, Rivian stock is considered a Moderate Buy by analyst consensus. Further, with an average price target of $28.20, Rivian stock offers its investors 16.82% upside potential.


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