Piper Sandler Reiterates Overweight Rating on Rivian Automotive Inc (RIVN)

Piper Sandler analyst Alexander Potter reiterated an Overweight rating and $21.00 price target on Rivian Automotive Inc (NASDAQ: RIVN).

The analyst commented, "RIVN was indicated higher by nearly 50% following today's announcement that the company will pursue a JV with Volkswagen. Perhaps the most immediate implication is that RIVN's funding pathway is now largely de-risked, with Rivian poised to obtain $5B in funding in the coming years. If all goes according to plan, RIVN will use this funding to construct its second factory in Georgia (among other things). But beyond this, we think the JV has broader implications for the entire auto industry. Specifically, it suggests that proprietary ECUs, electrical architectures, and software are necessary for automakers to control themselves. Rivian and Tesla have long advocated for in-house mastery of these technologies, and now Volkswagen is (apparently) attempting to replicate their approach. New Chinese brands are moving at an unprecedented speed, and only through vertical integration can other automakers hope to keep pace."

For an analyst ratings summary and ratings history on Rivian Automotive Inc click here. For more ratings news on Rivian Automotive Inc click here.

Shares of Rivian Automotive Inc closed at $11.96 yesterday.

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