Analyst Sees 45% Upside for EV Stock

There's room for analysts to board the bullish bandwagon

Deputy Editor
Mar 7, 2024 at 9:22 AM
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Jefferies initiated bullish coverage on electric vehicle (EV) giant Rivian Automotive Inc (NASDAQ:RIVN) with a "buy" rating and a $16 price target -- a more than 45% upside to last night's close. Catalysts included the EV firm's similarities to competitor Tesla (TSLA), as well as the company's capital spending trajectory, which could address gaps in its business model. 

In response, RIVN is 4.9% higher before the opening bell, looking to open above the $11.50 level that has acted as pressure since a mid-February, post-earnings bear gap. Said bear gap pushed the equity to an all-time low of $10.05, and while its regained some ground, Rivian Automotive stock is more than 50% lower year to date.

Despite the underperformance, the majority of covering brokerages are bullish on RIVN, but there's room for pessimism to unwind considering 10 of 23 rate the stock a "hold" or strong sell." What's more, the shares sold short account for 16.4% of the equity's total available float.  

Those looking to speculate with options should take advantage now. Rivian Automotive stock's Schaeffer's Volatility Scorecard (SVS) of 86 out of 100 indicates that the equity usually outperforms volatility expectations. 

 

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