Wedbush Securities kept an Outperform rating on Rivian Automotive (RIVN) and hiked its price target to $40 with the automaker seen moving past its period of production woes.
Earlier in the week, Rivian (RIVN) reiterated that the company is on track to meet its full-year production guidance for 25K deliveries after a slow start at the Normal, Illinois plant.
Analyst Dan Ives and year team believe Rivian (RIVN) is beginning to gain some Street credibility as it navigates the difficult supply chain environment incrementally better, which they ultimately see leading to an improving financial profile for the story into 2023. The demand reservation/order book for Rivian (RIVN) trucks is also said to look impressive looking out into 2023.
“We believe Rivian from a core engineering and design perspective along with the Amazon commercial relationship has the potential to be a major EV stalwart over the next decade. However, for that to happen they need to start delivering models to customers and stop the excuses AND we like what we see so far.”
Rivian Automotive (RIVN) is seen as having a window of opportunity ahead of the EV pickup battle ramping up next year with the F-150 Lightning, GM’s Silverado, and the Cybertruck all on the market.
Shares of RIVN fell 1.14% in premarket action to $31.27 after a 6.64% gain on Thursday.
Read more about Rivian Automotive’s (RIVN) Q2 production report.