Written by Cláudio Afonso | LinkedIn | X
Morgan Stanley analyst Adam Jonas raised on Wednesday its price target on Rivian shares to $17 from $13 as it forecasts higher margins and reduced operational expenditures.
In a new research note, the analyst stated that the recently announced partnership with Volkswagen Group provides cash that “reduces near-term volatility in the stock,” and added that software licensing could become even more relevant.
“Volkswagen’s cash reduces near term volatility in the stock but it doesn’t change our view that Rivian may have a better future as a Tier 1 supplier/Software defined vehicle (SDV) ‘tech partner’ than as a stand-alone maker of EVs,” Jonas wrote.
“Anything that takes Rivian away from making their own cars can be a positive,” he added as the updated model predicts that Rivian will primarily produce vehicles at its Normal facility while future models potentially developed in partnership with the German group.
Last week, the company introduced an automated online tool for trade-in estimates applicable to electric vehicles (EVs) but also to internal combustion engine (ICE) and Plug-in hybrid electric vehicles (PHEVs).
Owners of Rivian vehicles or other brands, including trucks and vans, can now submit their vehicle for evaluation using either the Vehicle Identification Number (VIN) or the license plate number, as initially shared by the Rivian owner Chris Hilbert on X.
Last week, Mizuho analyst Vijay Rakesh has raised the firm’s price target on the stock from $11.00 to $15.00 while maintaining a Neutral rating on the stock. The analyst sees the company with “a better balance sheet and reduced liquidity risk”.
In a new research note sent out last Friday, Rakesh’s update follows Rivian’s solid June quarter (JunQ) delivery report, which saw the EV maker deliver approximately 13.8k vehicles. A result that the analyst described as ‘solid.’
Earlier in the week, the company started the rollout of its latest over-the-air (OTA) software update, version 2024.23, for both R1 models (R1S and R1T) from the second generation.
The OTA update marks the debut of the Rivian Autonomy Platform, a suite of advanced driver assistance features. One of them is the “Lane Change on Command” feature, which allows the vehicle to perform lane changes when the turn signal is activated while Highway Assist is engaged.
Written by Cláudio Afonso | LinkedIn | X
