Guggenheim set RIVN's price target at $18
Guggenheim initiated coverage on Rivian Automotive Inc (NASDAQ:RIVN) before the bell today, rating it a "buy" with a price target of $18. The firm cited a "compelling catalyst path" for the electric vehicle (EV) name, which is expected to post positive gross profit for the first time in the fourth quarter after gaining its footing in the industry.
At last glance, RIVN was up 5.3% at $11.59, after last session bouncing off the $10 level, which provided support since mid-May. The 50-day moving average is acting as a floor as well. So far this year, the equity is down 50.2%.
Options traders also appear to be betting on a bounce, per Rivian Automotive stock's 10-day call/put volume ratio of 4.31 the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 95% of readings from the past year, showing calls being picked up a much faster-than-usual rate.
Short interest has also started to unwind, though it still represents a hefty 18.9% of the stock's available float. It would take shorts over three days to buy back their bearish bets, at RIVN's average pace of trading.