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

The analyst commented, "We remain Overweight after attending Rivian's investor day in Illinois. We still view the recently-announced JV with Volkswagen as a game-changer, and not just because VW's scale should help Rivian achieve lower COGS. Even more importantly, we think the JV validates Rivian's decision to design its own electrical architecture. It's not outwardly apparent to the average consumer, but in-house electronics represent a fundamental advantage for companies like Rivian and Tesla. Tier-1 suppliers are ill-suited to provide these systems. This, more than anything, is the top conclusion from the investor day . .. Our estimates and $21 price target are unchanged, but estimate revisions will be needed once the JV terms are finalized."

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Shares of Rivian Automotive Inc closed at $14.47 yesterday.