Piper Sandler Upgrades Rivian to Overweight, $20 PT

Piper Sandler analyst Alexander Potter upgraded Rivian Automotive Inc (NASDAQ: RIVN) from Neutral to Overweight with a price target of $20 (from $18).

“RIVN: a de-risked balance sheet, a smooth R2 ramp, and an improved demand outlook. Three things have changed, prompting us to increase our estimates and DCF based price target (PT) from $18 to $20.

First, RIVN boosted delivery guidance, thanks in part to expensive gasoline and a renewed interest in EVs.

Second, Rivian has apparently avoided launch issues with the R2 SUV, a pivotal new product.

Finally, a recent capital raise should fund growth while reducing dilution risk.

As volume rises, Rivian should be better able to monetize software & services, a key benefit of vertical integration.”

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