Tigress Financial Partners Starts Rivian Automotive Inc (RIVN) at Buy

December 10, 2021 10:42 AM EST
Get Alerts RIVN Hot Sheet
Price: $36.76 +1.74%

Rating Summary:
    13 Buy, 6 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 30 | New: 23
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Tigress Financial Partners analyst Ivan Feinseth initiates coverage on Rivian Automotive Inc (NASDAQ: RIVN) with a Buy rating and a price target of $147.00.

The analyst commented, "We are initiating research coverage on RIVN with a Buy rating and a 12-month target price of $147 as its innovative and exciting product line, ancillary services, and accessories offerings enables investors to participate in the ongoing electrification of the global auto industry and along with its partnership with Amazon to create a compelling investment opportunity. RIVN is well-positioned to benefit from the secular shift of the electrification of the global auto industry, marking its biggest evolution since the ICN (Internal Combustion Engine) was first invented. RIVN has several key attributes that create a compelling investment opportunity, including its initial line of pick-ups and SUVs, which targets the sweet spot of the automotive market, the fastest-growing and most profitable part of the over $9 trillion global automobile market. RIVN’s fully integrated business model and ecosystem, which includes production and design of vehicles, batteries, and charging systems along with its software and services platform and especially its FleetOS commercial services platform, enables it to better support the sale and service of its vehicles and create a compelling and sticky customer opportunity. RIVN’s modular design platform provides a significant opportunity to expand its product line is already well-received brand presence along with its ecosystem and support solutions will create significant product traction and a significant stream of recurring revenue opportunities through its full-service suite of solutions, including OTA (over-the-air) software and feature upgrade capabilities along with ongoing service connectivity as well as additional ownership support services including financing, leasing, and insurance services along with vehicle service and maintenance as well as used vehicle sales which also will increasingly create its competitive advantage. In addition, its modular EV platform enables it to easily and cost-effectively expand its product by leveraging parts overlap and common design. In addition, RIVN has already built a very strong management team and has several key strategic partners, most importantly Amazon (AMZN-US, Buy Rated), which has made a significant capital investment and commitment to purchase 100,000 EDVs (Electric Delivery Van) in their first year of production. The secular shift to EVs driven by the emergence of new models and manufacturers will drive significant consumer interest in an already hot automobile market which is only recently being held back by limited availability. RIVN’s advanced and extensive connected software-focused ecosystem will have a significantly higher margin and drive additional cash flow growth, greater Return on Capital, and Economic Profit growth which should drive long-term shareholder value creation. We believe further upside in the shares exists, and our 12-month target price of $147 represents a potential return of over 25% from current levels."

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 $115.40 yesterday.

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