Canaccord maintains Buy rating, $23 target on Rivian stock

On Thursday, Canaccord Genuity reaffirmed its positive stance on Rivian Automotive Inc (NASDAQ:RIVN), with a steadfast Buy rating and a price target maintained at $23.00. Currently trading at $12.49, Rivian’s stock sits between analyst targets ranging from $6.10 to $23.00. The research firm’s analyst, George Gianarikas, highlighted Rivian’s potential to capitalize on the current market dynamics as other manufacturers scale back their electric vehicle (EV) ambitions due to demand challenges. According to InvestingPro data, Rivian holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly.

Gianarikas compared the transition to electric vehicles to past shifts in consumer technology, such as the adoption of smartphones and streaming services. He suggested that these industry changes often lead to a reordering of market leadership, providing openings for new entrants like Rivian to rise to prominence. According to Gianarikas, Rivian is poised to differentiate itself and potentially become a new American automotive icon, even as the broader EV sector faces skepticism. The company’s revenue grew by 12% in the last twelve months, reaching nearly $5 billion, though its current gross profit margin remains negative at -24%.

The analyst’s commentary underlines Rivian’s opportunity to advance and potentially overtake competitors in the non-Tesla EV space. This optimism comes amid a broader narrative of an EV downturn, which has seen some automakers pull back from their electrification pledges.

Canaccord’s endorsement of Rivian is based on the belief that the automotive industry’s electrification is not just a possibility but a highly likely outcome. Gianarikas sees the current environment as a moment for Rivian to assert itself and secure a strong market position.

Rivian’s strategy and execution will be crucial as it navigates a competitive landscape and strives to meet Canaccord’s expectations. The firm’s reiterated Buy rating and $23 price target reflect confidence in Rivian’s ability to seize the moment and thrive in the evolving auto industry. With a current market capitalization of $14.1 billion and an overall Financial Health score rated as "FAIR" by InvestingPro, investors can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into Rivian’s investment potential.

In other recent news, Rivian Automotive has announced the creation of a spin-off company, Also, Inc., focused on micromobility solutions, backed by a $105 million investment from Rivian and Eclipse Ventures. Rivian will maintain a minority interest in this new venture, which marks a strategic shift to diversify within the electric vehicle sector. This move coincides with Truist Securities maintaining a Hold rating on Rivian, with a price target of $14, reflecting a cautious outlook on the company’s stock. Meanwhile, Piper Sandler has downgraded Rivian’s stock rating to Neutral, reducing the price target to $13, citing challenges in identifying growth catalysts for 2025 despite acknowledging Rivian’s strategic strengths.

Benchmark analyst Mickey Legg reaffirmed a Buy rating on Rivian with an $18 price target, adjusting the first-quarter vehicle delivery forecast to 8,000 units due to seasonal effects and constrained demand. Despite this adjustment, Rivian’s full-year delivery expectations remain between 46,000 and 51,000 vehicles. Rivian plans a shutdown of its Normal, Illinois facility to prepare for the launch of its new R2 platform in 2026. As the company navigates production and demand challenges, investors will closely watch Rivian’s performance in the coming quarters.

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