Shares of electric-truck start-up Rivian Automotive have recently experienced a boost in value, indicating that there may be more gains to come. The positive momentum was further supported by a recent upgrade from Evercore ISI analyst Chris McNally, who raised the stock’s rating from Hold to Buy. McNally also increased the price target for Rivian shares to $35, up from $30.
While specific details from the upgrade are not yet available, this development is timely as Rivian is expected to release its third-quarter sales and production report soon. Analysts on Wall Street project approximately 14,000 deliveries for the quarter, building on the 20,586 units delivered in the first half of the year. Rivian aims to produce about 52,000 vehicles by the end of 2023, and with approximately 29,000 remaining, they need to manufacture around 14,500 units per quarter.
Currently, around 64% of analysts covering Rivian stock rate it as a Buy, surpassing the average Buy-rating ratio for S&P 500 stocks which stands at about 55%. The average price target projected by analysts is $29 per share.
Despite a slight decline over the past year, Rivian’s stock has performed well in 2021, with an increase of about 40%. This positive trend can be attributed to the improving production figures, mitigating concerns related to rising interest rates impacting start-up companies without profitability.
Rivian’s stock was up 3.4% in premarket trading at $25.11 per share, while S&P 500 and Nasdaq Composite futures showed slight increases of about 0.1% and 0.2% respectively.