🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Stifel keeps $18 stock target on Rivian, cites R2 SUV positives

EditorNatashya Angelica
Published 07/03/2024, 22:28
© Reuters
RIVN
-

On Thursday, Stifel, a financial services firm, maintained a Buy rating for Rivian (NASDAQ:RIVN) Automotive Inc (NASDAQ:RIVN) with a steady stock price target of $18.00. The reiteration follows the electric vehicle manufacturer's announcement of its new R2 mid-size SUV platform, which is expected to begin production in the first half of 2026 with a starting price of approximately $45,000.

The analyst from Stifel highlighted several positive takeaways from the launch event. The first was the earlier-than-anticipated start of production, slated for the first half of 2026 instead of the previously expected late 2026. Additionally, the introduction of the R3 and R3x midsize crossover variants was seen as a favorable development.

A significant reduction in expected costs was another key point from the unveiling. Rivian plans to utilize its existing facility in Normal, Illinois, for production, which is a shift from the initial strategy to immediately build out a new plant in Georgia. This change is expected to substantially lower upfront expenses.

Furthermore, the company's management indicated that Rivian has adequate liquidity to support the launch of the R2 model. This is contrary to earlier assumptions that additional cash would be necessary to complete the launch.

Stifel views the R2 and R3 production as pivotal for Rivian's long-term success and its journey towards profitability. The firm believes the recent announcement is a positive step for the company and has chosen to maintain its Buy rating and target price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.