According to Wedbush, the outlook for Rivian is finally improving after a challenging period. Analyst Daniel Ives stated in a note that the company is making significant progress in executing its long-term business model, marking a turning point in its story. Wedbush maintained its outperform rating on Rivian shares and raised its price target to $30 from $25, indicating a potential 38.7% rally from the previous day’s closing price.
Ives highlighted that Rivian is overcoming obstacles that had weighed on its performance in previous quarters, such as production and supplier issues. The company’s vehicle production in the second quarter exceeded Wall Street’s expectations, and it remains well-positioned for the current period. Rivian is confident in achieving its production target of 50,000 vehicles for FY23, which Ives sees as a significant step forward.
Furthermore, he emphasized the company’s focus on cost optimization as a key strategy.
Rivian recently began delivering its RCV vans in Europe through its partnership with Amazon, marking its entry into a new market outside the United States. Ives expressed strong belief in Rivian’s long-term prospects, considering it an attractive investment opportunity at current levels.
During premarket trading, Rivian shares experienced a more than 3% increase on Friday. Although the stock has gained 17.3% in/2023, it remains down by over 31% over the past 12 months.
