Rivian gets the first grade. That’s a buy and a target price of $ 130. – .

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Rivian gets the first grade. That’s a buy and a target price of $ 130. – .



Rivien
The deluge of hearings has begun. Investors should be happy.

Rivien Automobile
(ticker: RIVN) got its first grade. It’s a purchase from Wedbush analyst Dan Ives. Its price target is $ 130, almost 25% higher than Rivian’s close on Friday.

Ives calls Rivian an “electric vehicle mainstay in the making”, adding that the company “seeks to strategically enter an untapped market, as electric SUVs / vans are virtually non-existent in the electric vehicle market today.” Trucks and SUVs are very popular in the United States, typically accounting for over 60% of total passenger vehicle sales.

“Rivian is a unique player in vertically integrated electric vehicles, poised to have a strong grip in the pickup truck and SUV market,” said Ives. Barron in a statement sent by email. RJ and his team scaled up Rivian quickly and an innovative design and skateboard front and center.

RJ Scaringe is the founder and CEO of MIT-trained Rivian. A skateboard design refers to an automotive chassis that includes many self-contained components, including electric motors and batteries. Other car manufacturers also have skateboard type designs.

Ives is also encouraged

Amazon.com
(AMZN) is an early investor and early customer, ordering 100,000 delivery trucks from Rivian.

Since this is the first rating, this is the first opportunity for investors to view the estimates. Ives forecasts $ 3.6 billion in revenue from approximately 45,000 vehicle deliveries in 2022 and $ 8.4 billion from sales of approximately 105,000 deliveries in 2023. The company is not expected to generate any profit in either year.

Ives’ target price implies that Rivian stock is expected to trade at around 15 times estimated sales in 2023. Stocks of

Tesla
(TSLA), the leader in electric vehicles, is trading around 11 times estimated sales in 2023.

This is a great valuation for growth stocks, but Ives is quite familiar with growth stocks. It covers electric vehicles and technology stocks such as

Salesforce.com
(CRM). On the automotive side of his coverage list, Ives rates Tesla shares and

General Motors
(GM) both Buy. Its target price for Tesla stock is $ 1,400 per share. Its price target for GM is $ 85 per share.

The purchase ratings of GM, Tesla and now Rivian are based on Ives’ belief that electric vehicles will become the dominant form of personal transportation in the years to come.

More Rivian odds will follow this one – most likely arriving on Monday. Wall Street brokers involved in an IPO must wait 25 days to initiate the hedge. Including weekends, the ban is now obsolete.

Rivian investors will welcome some buy ratings. The stock is down from the peak reached on Nov. 16 at nearly $ 180 a share. Rivian stock fell 6.7% last week in a tough week for growth stocks. The


Russell 1000 Growth Index

fell 2.2%. The


S&P 500

fell 1.2% for the week and the


Dow Jones Industrial Average

fell 0.9%.

Write to Al Root at [email protected]

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