Rivian (RIVN -1.61%) stock stepped on the bullish pedal Monday. The electric vehicle (EV) specialist's share price ended the day's trading up 3.9%, according to data from S&P Global Market Intelligence.
With its share price down roughly 41% year to date, Rivian stock has struggled across the first half of 2024. But some analysts think that the sell-off has become overblown. Analysts at both RBC Capital and Canaccord raised their price targets on the stock today, and the positive momentum helped power its gains.
RBC Capital takes a neutral stance on Rivian stock
RBC Capital's Tom Narayan published a note on Rivian stock before the market opened this morning, maintaining a sector-perform rating on the stock. While the analyst maintained his overall rating on the stock, he did raise his one-year price target from $11 per share to $14 per share. Based on the stock's closing price today, that reflects an expectation that the EV specialist is accurately valued.
Narayan pointed to the company's deal with Volkswagen providing valuable liquidity for Rivian's business and a reinforcing catalyst for its stock. The deal could provide up to $5 billion in investment capital for Rivian. The analyst also said to look for a potential shift into positive gross margins in the fourth quarter as an important indicator for Rivian.
Canaccord Genuity is far more bullish
In the note it published on Rivian stock today, Canaccord Genuity maintained a buy rating on Rivian stock. More strikingly, the firm raised its one-year price target on the stock from $20 per share to $30 per share. If the EV specialist were to hit that new valuation projection, it would suggest upside of roughly 114%.
Canaccord sees Volkswagen's investment in Rivian as a monumental event. The firm thinks that the market is underestimating the impact of the deal, and its new price target points to expectations for a valuation turnaround occurring in the near future.
