Despite the volatility in the stock market, Rivian Automotive (NASDAQ:RIVN) is standing out as a beacon of resilience. Needham has upheld Rivian Automotive (RIVN) as a Conviction List pick following the revelation of robust results from a R1T inventory survey and the observation of strong R1T and R1S demand trends.

Rivian Automotive (RIVN) used prices have emerged as a source of strength, outperforming its peers in Needham’s latest electric vehicle price tracker. This has led to positive leverage in negotiations with suppliers ahead of R1 growth and R2 planning.

Analyst Chris Pierce and team at Needham view Buy-rated Rivian Autmotive’s (RIVN) Q4 data in a positive light. The increased sequential production represents significant progress in RIVN’s manufacturing capabilities. Additionally, the modest easing of concerns regarding the 2024 R1 production line shutdowns is another encouraging development. Pierce emphasized, “Deliveries beat our estimate, and we expect the wide gap between production and deliveries to put upward pressure on the consensus Q124 delivery estimate, adding a 1H catalyst to the stock vs current focus on 2H gross margin.”

Needham’s price target of $25 on RIVN is 20X the firm’s 2027 adjusted EBITDA estimate discounted back, or around 2.5X the 2024 revenue estimate. This underscores the positive outlook for the company’s performance in the coming years.

While Rivian Automotive (RIVN) experienced a modest 1.28% decline in early trading on Tuesday, the stock has exhibited resilience in the face of broader market challenges. Although it is down more than 18% for the early part of 2024, the EV stock is still above its 200-day moving average. Short interest on RIVN stands at 15.1% of the total float, indicative of market sentiment towards the stock.