Rivian Automotive, Inc. (RIVN) has experienced a significant increase in its stock price, rising by more than 20% amidst a rally in the electric vehicle (EV) stocks. This surge comes as several EV makers, including Lucid Group, Inc. (LCID) and Tesla, Inc. (TSLA), reported better-than-expected second-quarter vehicle deliveries, signaling positive momentum in the EV market.
Furthermore, the June inflation data, which came in cooler-than-expected, led to a rally in small cap stocks and sectors with heavy debt loads, further boosting EV stocks. The Department of Energy’s disclosure of $1.7 billion in grants to transform auto production facilities into EV manufacturing plants and supply chain hubs also contributed to the positive sentiment surrounding EV stocks.
In light of these developments, Mizuho analyst Vijay Rakesh maintained a Neutral rating on Rivian and raised the price target from $11 to $15. Despite this positive outlook, it is crucial to consider analyst forecasts and market trends when assessing whether Rivian Automotive will continue to trade higher from its current levels.
Wall Street analysts have an average 12-month price target of £15.20 on Rivian Automotive, with the highest target at £30 and the lowest at £9. Of all the analysts covering Rivian Automotive, 12 have positive ratings, 12 have neutral ratings, and one has a negative rating. However, it’s crucial to acknowledge that stocks don’t move in a straight line, and the average analyst price target suggests that Rivian Automotive could face further downside ahead.
As of the time of publication, Rivian Automotive shares are up 8.03% at £18.11, trading well-above the stock’s 50-day moving average of £11.63. It’s worth noting that 18.48% of available shares are being sold short, indicating a level of uncertainty in the market.
In conclusion, while the recent surge in Rivian Automotive stock reflects positive momentum and market sentiment in the EV sector, it is important for investors to consider a holistic view of the stock and track upcoming market trends to make informed decisions.
(Figure: Courtesy of Rivian Automotive, Inc. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.)