Rivian shares could double from here: Canaccord Genuity
- Canaccord Genuity initiates Rivian with a "buy" rating and $61 price target.
- The EV maker says it is on track to deliver 25,000 electric vehicles in 2022.
- Rivian shares are currently down nearly 70% versus the start of the year.
Rivian Automotive Inc (NASDAQ: RIVN) is already up 20% in July but a Canaccord Genuity analyst says it’s just a sneak peak into what’s about to come.
Rivian shares are a ‘buy’ with upside to $61
On Wednesday, George Gianarikas assumed coverage of the electric vehicles manufacturer with a “buy” rating. His price target of $61 a share translates to a 100% upside from here. In his bullish note, the analyst said:
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Rivian has the ingredients to develop into a leader in the EV and mobility marketplace. The company has amassed strong talent, a robust balance sheet, a durable Amazon partnership, and the proper vertically integrated strategy.
Gianarikas agreed the road since Rivian listed on Nasdaq in November 2021 has been a rough one, but is convinced the management will “execute” significantly better from here on. The EV company is scheduled to report its Q2 results on August 11th.
Rivian is keeping strong despite supply constraints
Amazon.com Inc has an 18% stake in the automotive technology company. In 2019, the multinational said it will buy 100,000 electric delivery vans from Rivian.
The initial order, as per George Gianarikas, did help Rivian with capital and credibility but the “immediate scale”, he added, also enables it to reap a bunch of other benefits in terms of costs, manufacturing, and design.
Last month, the Irvine-headquartered company confirmed that it was on track to deliver 25,000 vehicles this year, despite the much-talked-about supply constraints and inflation at large. The stock is down nearly 70% for the year.