On Thursday, Piper Sandler shifted its stance on Rivian (NASDAQ:RIVN) Automotive Inc (NASDAQ:RIVN), upgrading the electric vehicle maker's stock from Neutral to Overweight and increasing the share price target to $21 from the previous $15. The firm's reassessment was spurred by several factors, including a recent product unveiling and strategic financial decisions.
In a statement, the firm acknowledged the inherent risks associated with investing in Rivian, particularly emphasizing the potential challenges that could arise from the company's midyear re-tooling efforts. Despite these risks, the analyst cited the impressive consumer response to Rivian's new R2 SUV, which garnered 68,000 orders in under a day, as a reason for optimism.
The excitement around Rivian's product lineup, which will soon include the R3 – anticipated to be a highly competitive design in the market – was a key driver behind the upgraded outlook. The firm also noted Rivian's decision to delay capital expenditures and utilize an existing plant for R2 production as a positive move that could encourage a more bullish perspective among investors.
The revised forecast and increased price target to $21 reflect the firm's updated guidance following the R2 SUV's debut. The analyst's statement concluded with an emphasis on the potential of Rivian's new products and strategic planning to positively influence investor sentiment.
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