Rivian Automotive Today
Rivian Automotive
(As of 12/5/2024 6:02 PM ET)
- 52 week range
- $8.26
▼
$24.61
- Target price
- US$15.73
Shares Rivian Automotive Inc. NASDAQ: RIVN are gradually recovering after a difficult year. The stock continues to consolidate above April’s record low and is now up 30% since the start of last month. While Rivian is still far from its 2021 and 2022 highs, there are reasons to believe it may be poised for a significant comeback.
Headquartered in California and with a market capitalization of $12 billion, Rivian is known for its electric SUVs and trucks. The company has established itself as a major player in the electric vehicle industry. In the last couple of weeks of the year, investors began to reassess Rivian’s prospects. For those brave enough to take on a high-risk, high-reward game, now is the time to consider participating.
Rivian Fundamental Results: Challenges and Opportunities
First, let’s look at the main characteristics of Rivian. The last few quarters have been challenging, to say the least. The company has struggled to beat analysts’ expectations for both earnings per share and revenue, and its last report in November actually showed a 12% year-over-year decline in revenue.
It’s clear that this trend has had an impact on investor sentiment, with demand issues and rising costs hitting the company hard and making the stock unattractive. Still, stocks like Rivian will always be attractive to more forward-thinking investors, and optimists have reason to be excited. For example, management confirmed in its latest report that the company continued to achieve positive gross profit growth in the final quarter of the year.
R.J. Scaringe, Rivian’s CEO, also offered an upbeat outlook: “We made progress this quarter on our key goals, especially improving the cost structure of our Gen 2 R1 platform. Additionally, we’re excited about our midsize SUV, the R2, which we believe will drive long-term growth. Our proposed joint venture with Volkswagen adds another layer of optimism.”
For those of us on the outside looking in, these developments hint at an ongoing recovery, making Rivian an interesting comeback in 2024.
Analysts note recovery dynamics and growth prospects for Rivian
Underlying the potential for improvement is the fact that some analysts are bullish on Rivian’s prospects. The Wedbush team maintained a Buy rating on Rivian last month, pointing to improving demand trends and operating performance.
What stands out is their $20 price target, which suggests 70% upside from Rivian’s closing price on Wednesday. Stifel Nikolaus and Robert Baird have also shared similar sentiments in recent weeks, rating Rivian a Buy.
Calls for recovery create attractive risk/reward profile for Rivian
Rivian Automotive stock forecast today
US$15.73
Growth potential 27.45%Hold
Based on ratings from 23 analysts
| High forecast | $28.00 |
|---|---|
| Average forecast | $15.73 |
| Low forecast | $11.00 |
Rivian Automotive Stock Forecast Details
This optimism does not come without risks. Rivian shares remain well below the highs of early 2022, and 2024 may have been its toughest year yet. Headwinds, including falling demand and rising costs, have shown little mercy, which is understandably keeping many investors cautious.
On top of this, the Goldman Sachs team recently maintained a neutral rating on Rivian, while Royal Bank of Canada took the same stance. Their caution reflects concerns about execution risk and whether Rivian can achieve its ambitious goals.
However, the stock has made higher lows since its April low, suggesting the worst may be behind it. With many analysts now calling for an economic recovery, the risk/reward ratio appears attractive for those looking to ride the wave.
Get involved: Rivian stock shows momentum heading into year-end
Heading into the final few weeks of the year, this stock is one to watch closely, especially as momentum builds both fundamentally and technically. Rivian’s Relative Strength Index (RSI) is currently at 60, indicating strong upward momentum but still leaving room for growth. For context, an RSI above 70 typically signals overbought conditions, so the current level suggests there is huge potential for further growth.
The broader market environment is also working in Rivian’s favor. The S&P 500 is hitting new all-time highs, and the Fed’s recent rate cut has increased risk appetite, fueling interest in promising investments like Rivian. It may be a while before the stock gets back to prices above $100, but it looks like it’s poised to start heading towards that level soon.
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