Autos

9 Analysts Place Their Bets on Rivian

Barclays

Barclays analysts also initiated coverage, with an Equal Weight rating and a price target of $120. The analysts believe that Rivian’s positioning of itself as an “adventurous forever” company differentiates its vehicles in a crowded field of electric vehicles and traditional pickups and SUVs. It’s worked for Jeep for a long time.

Deutsche Bank

Analysts at Deutsche Bank have initiated coverage on Rivian with a Buy rating and a price target of $130. The bank’s analysts especially note a “well-thought-out business plan with unique approaches both to hardware and software.” On the hardware side, the analysts note that the flexible architecture allows for rapid introduction of new models that create economies of scale without requiring a “heroic” market share.

Piper Jaffray

Piper Jaffray analysts started coverage with an Overweight rating and a price target of $148 reflecting upside potential of 40%. The analysts see Rivian’s vertical integration model as a differentiator and a positive, unlike JPMorgan’s more cautious view of the model. Rivian’s plan to develop its own software, chips, batteries, charging networks and direct-to-consumer sales model are within the management team’s capabilities, according to Piper Jaffray.

Baird

Analysts at Baird have begun coverage with an Outperform rating and a $150 price target. The analysts believe that the company has a chance of challenging Tesla’s market dominance with its vertically integrated approach, its strong balance sheet, its partnership with Amazon and its ability to recruit new talent. Much (all?) depends on Rivian’s ability to scale.

RBC Capital

RBC Capital’s analysts have initiated coverage with an Outperform rating and a price target of $165. Calling the company’s R1T pickup a category-defining vehicle, the analysts think the light truck should drive a compound annual growth rate of 50% through the end of the decade. The analysts also appear to agree with Rivian’s estimate of the total available automotive and mobility market of around $9 trillion and with the EV maker’s decision to focus first on the North American market, which RBC thinks “is on the cusp” of an EV inflection point.

Bank of America

Analysts at BofA Securities have initiated coverage of Rivian with a Buy rating and a price target of $170. They believe that Rivian is not only the “most legitimate” of the herd of new EV makers but is also a “relative competitive threat” to legacy automakers, thanks to Rivian’s solid business model.

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