Truist analysts say investors should buy Rivian shares immediately, ahead of an expected surge. Truist initiated coverage of the company with a buy rating and a $64 price target, signaling that shares could rise 85% from current levels after declining roughly 66% year to date.
“As Rivian pushes through the formidable challenges of ramping four different vehicles amidst a historically difficult supply chain backdrop, we believe the market will come to see Rivian not just as a successful EV manufacturer with a powerful partner in Amazon, but as a leading example of a next-generation diversified mobility tech powerhouse,” wrote analyst Jordan Levy.
According to Levy, Rivian has several advantages that shouldn’t be overlooked. This includes the company’s leadership team. “Rivian CEO RJ Scaringe has built the company from the ground-up while bringing together a team with expertise spanning the broad range of the company’s business segment,” Levy wrote.
Another advantage, Levy said, is the company’s vertical integration and product differentiation. “Controlling the full software & electronics landscape within its vehicles is core to Rivian’s business model, and we believe will prove invaluable in the growth of multiple recurring revenue streams,” Levy said.
Levy noted that the company’s product offerings could leave competitors playing catch up. “On the consumer side, this means drive modes, infotainment, fun stuff,” Levy added. “On the commercial side it is seamless integration with the company’s systems, fleet monitoring & analytics, connectivity.”
One of the most significant advantages for the electric vehicle maker is its partnership with Amazon. “We see Amazon’s initial purchase of 100,000 EDVs through 2030 underwriting steady growth in RIVN’s commercial segment and driving meaningful demand from other fleet owners moving into the latter half of the decade,” Levy wrote.
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