Though Rivian (NASDAQ: RIVN) had been on a steady decline along with much of the electric vehicle (EV) industry since the start of 2024, the EV maker received a massive boost late on June 25 – one which saw the stock rocket as much as 50% in the pre-market on June 26.
The major rally was driven by the news that the German automaker Volkswagen (ETR: VOW3) is making a $5 billion investment in RIVN focused on helping the former with its software challenges and the latter in the development of a lower-cost electric SUV.
While Rivian’s stock surge is not yet enough to erase the company’s 2024 losses entirely – RIVN stock price at the time of publication stands at $16.98, while on January 2, the EV maker’s share price was at $21.10 – it provided a second wind to the already-present analyst bullishness.
Analysts update Rivian stock price targets
The first expert to react to the Volkswagen news was Wedbush’s Dan Ives, who announced in an X post on June 26 that he is maintaining an ‘outperform’ – ‘buy’- rating for the EV maker and increasing the 12-month price target from $15 to $20.
According to Ives, while there is more work ahead for Rivian, the investment is a ‘huge win’ and ‘takes the biggest bear thesis around capital off the table.’
The forecast updates immediately preceding the Volkswagen news were also fairly bullish despite RIVN’s stock market decline.
On June 25, Guggenheim initiated its coverage of Rivian, immediately assigning it a ‘buy’ rating and forecasting a rise to $18 in the coming 52 weeks.
Finally, on June 17, Cantor Fitzgerald reiterated its previous rating of Rivian as ‘overweight’ – ‘buy’ – and confirmed it still considers $15 a reasonable 12-month price target. It is worth pointing out, however, that the price target was a downgrade from $23 when it was initially assigned in May.
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