Rivian Stock Surpasses Analyst Target Price, Analysts Weigh In
Recently, shares of Rivian Automotive Inc (Symbol: RIVN) have climbed above the average analyst 12-month target price of $14.00, trading at $14.26 per share. When a stock hits an analyst’s target price, they typically face two options: downgrade their valuation or raise their target price. The analyst’s reaction could also depend on the company’s underlying fundamentals, which drive stock price fluctuations. If the outlook for Rivian improves, a higher target may be warranted.
Within the Zacks coverage universe, 25 analysts have contributed to Rivian’s average target price. This average, however, represents a mathematical midpoint; some analysts project lower prices, with one estimating just $6.10, while another forecasts as high as $23.00. The standard deviation among these estimates is $3.381.
The purpose of analyzing the average price target is to utilize a “wisdom of crowds” approach, combining insights from various experts rather than relying on a single opinion. With RIVN now trading above the average target price of $14.00 per share, investors might consider the next steps: is this price point merely a waypoint toward an even higher target, or has the valuation become inflated, suggesting it’s time to take profits? Below is a breakdown of the current analyst ratings for Rivian Automotive Inc:
| Recent RIVN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 7 | 7 | 8 | 10 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 15 | 15 | 14 | 13 |
| Sell ratings: | 1 | 1 | 1 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 2.62 | 2.62 | 2.54 | 2.35 |
The average rating, shown in the final row of the table, ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. The data presented here is sourced from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
