Shares of Rivian Automotive (NASDAQ: RIVN) were trading sharply higher on Monday, after a Wall Street analyst initiated coverage of the stock with a strong recommendation.
As of noon ET, Rivian’s shares were up about 12.1% from Friday’s closing price.
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In a new note on Monday, Benchmark initiated coverage of Rivian with a buy rating and a price target of $18, about 38.5% above Friday’s closing price.
According to reports, the firm believes that Rivian is “well positioned” to take a significant share of the “massive” emerging opportunity for electric vehicles (EVs) over the next decade. Benchmark believes that U.S. electric vehicle production will pick up in 2025 and accelerate in 2026 and 2027 as more charging infrastructure is built and the average selling prices for EVs continue to come down.
Benchmark likes Rivian because of its still-substantial cash position, its contracts with Amazon and Volkswagen, and Rivian’s expectation that it will post a positive gross product for the current quarter.
Rivian is still an emerging automaker, of course. But Consumer Reports said late last week that despite less-than-optimal quality, Rivian’s owner satisfaction was the highest among the 27 auto brands included in its most recent rankings.
That’s another sign that Rivian is likely to stick around — and likely to continue to grow as EV adoption increases.
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