Rivian Automotive Inc (RIVN) PT Raised to $19 at Cantor Fitzgerald on VW Deal

Cantor Fitzgerald analyst Andres Sheppard raised the price target on Rivian Automotive Inc (NASDAQ: RIVN) to $19.00 (from $15.00) while maintaining a Overweight rating.

The analyst commented: "Rivian Announces Joint Venture (JV) with Volkswagen, and Up to a ~$5B Investment (through 2026). On 6/25, RIVN announced that it is entering into an equally controlled JV with Volkswagen, in order to develop software technology, electronic control units, and related network architecture design. As a result of this announcement, Volkswagen will provide a total investment of up to $5B, which includes a $1B immediate unsecured convertible bond, plus an additional ~$4B, subject to the formation of the JV, which is expected to close in 4Q24. The additional $4B investment will comprise of a $2B investment by Volkswagen in RIVN's common stock (split in two $1B tranches in 2025 and 2026), and a $2B investment (with first payment in 4Q24), and a loan in 2026. As a result of this agreement, we expect Rivian will be able to extend its cash runway, to achieve additional cost savings, and to improve its margin profile over the medium to long term, and therefore we are increasing our PT to $19 (from $15)."

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