Home Market News The Rev-Up: Piper Sandler Boosts Price Target for Rivian (RIVN) Stock

The Rev-Up: Piper Sandler Boosts Price Target for Rivian (RIVN) Stock

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The Rev-Up: Piper Sandler Boosts Price Target for Rivian (RIVN) Stock

Despite small investors taking a step back, Rivian is accelerating forward as Piper Sandler provides a burst of support.

An Electric Revelation: Rivian’s Surge

Revving its engine with newfound vigor, electric vehicle (EV) maker Rivian (NASDAQ:RIVN) experienced an impressive surge overnight. Piper Sandler, in a move of confidence, upgraded the stock to “overweight” and significantly heightened its price target from $15 per share to $21.

Roaring ahead with a 3% overnight climb, Rivian is set to open today at $11.04 per share. This rise follows a challenging descent of 8.7% the previous day.

Behind the Wheel: Reasons to Invest in Rivian

In the face of daunting losses and a slower EV market landscape, Rivian soldiers on. Analyst Alexander Potter highlights that Rivian garnered an impressive 68,000 deposits for the new R2 within just 24 hours of its unveiling, indicating robust demand that refuses to wane.

“We think its sibling, the R3, could be one of the most compelling designs on the market upon its release,” Potter asserts. The company’s strategic move to defer the Georgia plant in favor of manufacturing the R2 in Illinois has been viewed positively.

The outlook on Rivian stock is currently a mixed bag. While most analysts at Tipranks advocate for buying, the sentiment on Stocktwits has taken a negative turn. Fintel data reveals that over 17% of Rivian stock is held short, with almost half kept off listed exchanges.

Termed a “make or break” product for Rivian, the $45,000 R2 has garnered positive reviews. However, its release is slated for 2026, demanding that Rivian demonstrate not only its manufacturing capabilities but also achieve profitability simultaneously.

Prior to unleashing the R2, Rivian faces a vital decision regarding the construction of the Georgia plant, intended to produce the $25,000 R3. By postponing the Georgia plant, Rivian anticipates saving a substantial $2.5 billion.

In conjunction with the new plant, Rivian is set to issue $15 billion in financing bonds facilitated by county governments and the state of Georgia. The company had already raised $1.5 billion through convertible bonds the previous year.

RIVN Stock: The Road Ahead

While professional analysts continue to stand in Rivian’s corner, retail investors seem to be retracting. The divergence of views sets the stage for a clash of convictions, predicting that one side will eventually be proven wrong.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.