- RBC Capital analyst Joseph Spak maintained Rivian Automotive Inc (NASDAQ:RIVN) and cut the price target from $75 to $62.
- Spak found a sizeable addressable market that is up for grabs as the industry goes electric.
- He liked the segments that Rivian chased. Rivian will initially focus on the NA market, a region he believes is on the cusp of a BEV inflection. Further, ~77% of 2021 U.S. light vehicle sales are trucks, where the Rivian consumer portfolio is focused. Rivian's initial consumer products, the R1T and R1S, are impressive and category-defining.
- He found Rivian's clean sheet approach and tech allows for vehicles as a platform for recurring revenue.
- He noted Rivian's diverse business model and having Amazon.com Inc (NASDAQ:AMZN) involvement helped add scale. Amazon allows Rivian to attack the electric last-mile delivery market with a great partner that can provide invaluable feedback. Further, the Amazon order of 100K vehicles by 2025 with an estimated $7 billion value helps provide visibility.
- However, he cut the 2023 production expectations as Rivian will switch to introduce LFP packs and their new in-house Enduro motor and plans to re-rate their plant to allocate 75% of production to the R1, which will require a multi-week changeover.
- Price Action: RIVN shares traded higher by 1.52% at $34.3 on the last check Wednesday.
Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.