Wall Street analyst updates Rivian (RIVN) stock price

As Rivian’s (NASDAQ: RIVN) stock price seeks to maintain its recent bullish momentum, a Needham analyst has issued a more optimistic outlook for the equity.

As of press time, RIVN shares were trading at $13.26, up 1.3%. On the weekly chart, the stock has gained over 6%, while year-to-date, Rivian shares have only inched up 0.11%.

Regarding the stock outlook, Needham analyst Chris Pierce reiterated a ‘Buy’ rating on Rivian and maintained a $14 price target, citing confidence in the company’s upcoming product lineup.

Pierce highlighted the importance of Rivian’s upcoming R2 model, a mid-size SUV expected to be priced around $50,000. The R2 is designed to extend Rivian’s reach beyond its higher-end R1 series, opening the company to a broader consumer base and expanding its total addressable market.

According to Pierce, Rivian is well-positioned in the electric vehicle market, particularly as it prepares to enter a segment with strong demand dynamics. 

He pointed to encouraging survey findings from regions with low EV penetration, which showed solid brand awareness, limited negative perceptions, and promising purchase intent for Rivian vehicles.

Pierce’s $14 price target is based on a valuation of 15 times Rivian’s estimated 2028 adjusted EBITDA, discounted to present value.

Wall Street cautious on Rivian stock 

In general, however, the rest of Wall Street remains cautious on Rivian. Specifically, according to insights by TipRanks, 23 Wall Street analysts currently have a consensus ‘Hold’ rating on RIVN stock. The breakdown shows seven analysts recommending a ‘Buy’, 13 suggesting ‘Hold’, and three advising ‘Sell’.

The average 12-month price target for Rivian is $13.83, reflecting a modest 4.38% upside from the current price of $13.25.

Overall, Rivian stock has experienced volatility over the past year, struggling to sustain consistent upward momentum as it faces stiff competition from established players such as Tesla.

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