UBS upgraded RIVN to "buy" from "neutral"
After shedding 22.1% last week on the heels of a $1.5 billion capital raise, the shares of electric vehicle (EV) firm Rivian Automotive Inc (NASDAQ:RIVN) are up more than 2.5% premarket after a bull note from UBS.
The Wall Street analyst upgraded RIVN to "buy" from "neutral" but cut its price target to $24 from $26. Noting the post-selloff buying opportunity, the brokerage praised the EV company's improving fundamentals and potential for even more upside.
Though the stock sports a marginal 1.9% year-to-date lead, the majority of analysts still call Rivian stock a "buy" or "strong buy." However, the current 12-month consensus target price of $28.91 standing at a 50.1% premium to last night's close.
Over the last six months, RIVN has added 26.8%.
Shorter-term, the stock is testing its 200-day trendline, a moving average that stepped up as support back in August. The equity's annual late-July highs were capped by the $28 level, an area just below UBS' new price objective.