Over the weekend, multiple analysts weighed in on Rivian Stock providing their valuations over the next 12 months. Rivian Stock first made headlines in November after its post-IPO surge. The stock price reached heights of $179 a share before finding an equilibrium at $116.
Rivian has large stakeholders including Ford and Amazon, of which Amazon is expected to provide business for the EV manufacturer over the next 5 years. However, to date the company is yet to commercialise its staple vehicle models R1T and R1S. Here’s what Wallstreet had to say about Rivian Stock and whether the consensus amongst analysts is a Buy or Sell.
Is Rivian Stock a Buy Breakdown
Wallstreet Valuation on Rivian Stock implies 15% upside
Across the board of 13 Wallstreet analysts, the average price target currently stands at $134 a share, implying a 15% upside. The standout valuations come from Bank of America and Morgan Stanley, with targets of $170 and $147 respectively.
Bank of America analyst John Murphy, who has completed coverage across a wide range of EV companies, initiated coverage on Rivian Automotive Stock with a Buy rating and $170 price target.
The analyst noted that Rivian has a “well-defined” and “constructed” business model that holds a competitive advantage. Murphy noted that Rivian Stock is still risky and the company will need to maintain its pre-order demand. The BofA analyst brings up a good point regarding orders moving into 2022, as deliveries are a substantial factor in keeping an EV company afloat. Rivian are expected to begin deliveries of its R1T and R1S models in 2022.
Rivian Stock to challenge Tesla says Morgan Stanley analyst
Morgan Stanley analyst Adam Jonas also initiated coverage of Rivian Stock (RIVN) with an Overweight rating and $147 price target. The analyst noted that Rivian has a “compelling product” alongside a strong management team. Jonas sees Rivian potentially challenging Tesla (TSLA) with the R1T and R1S models in 2022.
The analyst also highlighted an important point about the companies Van fleets that have exponential corporate use. The EV Van market remains a great opportunity which is relatively untouched. Lastly, Jonas added that the deal with Amazon could potentially see 300,000 vehicles sold to Amazon through 2025/2026 instead of the proposed 100,000.
Not all analysts are convinced on Rivian Stock
Although the majority of analysts have initiated coverage with a Buy rating, some analysts such as JPMorgan’s analyst Ryan Brinkman see the stock as overvalued.
Brinkman has a neutral rating on Rivian Stock with a $104 price target. The analyst noted that the upside of Rivian may have already been priced in despite the stock trading at a current market cap of $98 Billion. Nevertheless, the analyst did still note Rivian has a good management team which has mitigated some execution risks.
Is Rivian Stock a Buy according to analysts? – The Bottom line
Overall, the supercharged hype surrounding Rivian Stock (NASDAQ:RIVN) is beginning to fade and Rivian Stock has returned to a new market cap equilbrium of $98 Billion. The general consensus on Wallstreet is bullish, with a consensus buy rating and an average price target on Rivian stock implying a healthy upside.
However, some analysts including JP Morgan analyst Ryan Brinkman see the upsides already priced. Valuation becomes the big question for Rivian shareholders following the large surge we saw post-IPO.
The good news for investors is that Wallstreet remains upbeat on the companies vehicles, market entry strategy and management team. We will see how the market reacts over the coming weeks surrounding the recent coverage from Wallstreet.
Follow us on Google News here to get minute-by-minute updates on when we post on any device via the Google News App.
The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.