Rivian Share Price (NASDAQ: RIVN) Lost 8.1% Last Week. Is A 107% Swing On The Cards?

Electric vehicle (EV) manufacturer Rivian Automotive (NASDAQ: RIVN) has seen its share prices on a downward trajectory following the release of its first-quarter production and delivery numbers. With RIVN having dipped 8.1% last week, is there 107% upside in the stock?

Rivian shares YTD has dipped severely, taking a hit of 52.13% bringing its share price down (from $21.10 in January 2024) to $10.10 today. However, analysts at Piper Sandler are suggesting that this dip in the stock's price could present a strong buying opportunity for investors.

In a week when many investors are showing concerns about Rivian's recent performance, Piper Sandler has recently placed a vote of confidence in the automaker by upgrading to an ‘overweight' rating (from ‘neutral') on its shares.

The investment firm has set a price target of $21 up from $15 for RIVN, advocating an optimistic vision for the EV maker's financial future. Should the company hit this target, it represents a substantial 107% gain over the next 12 months based on the current trading price.

Piper Sandler's affirmative outlook on Rivian is not unfounded. It primarily stems from the emphasis on Rivian's growth plans that are in the pipeline. These expansion and development strategies are central to the company's long-term value proposition and are expected to significantly drive the company's worth, reflecting in its share price over time.

Considering the current state of the EV market, with rising competition and a dynamic technological landscape, analyst recommendations play a pivotal role in shaping investor sentiment. The backing by Piper Sandler notably pushes against a broader trend of cautiousness that has swayed many investors to reassess their positions in the EV sector, especially with newer entrants like Rivian.

Listed under the ticker RIVN on the NASDAQ, off the back of a highly price SPAC, Rivian's journey on the stock market encapsulates the highs and lows typical of the EV industry, known for its volatility and reliance on forward-looking statements and projected growth. The recent decline in stock value underscores the company's current challenges, including ramping up production to meet demand and navigating the competitive and supply-chain constrained environment of the EV industry. The new and highly anticipated R2 SUV, has garnered 68,000 orders in less than 24 hours, acting as a positive catalyst.

Despite the downturn, Rivian's potential as posited by Piper Sandler offers a glimmer of hope to shareholders and potential investors alike. The price target sets an ambitious but conceivable milestone for the company, suggesting that the recent slump could be a temporary setback on an otherwise upward trajectory.

Piper Sandler's assertion may be a catalyst for investors who are eyeing long-term rewards despite Rivian's short-term stumbles. By doubling down on its growth projections and the milestones ahead for Rivian, the firm reinforces a sentiment that the EV maker's growth prospects could outpace the immediate hurdles it faces.

Not All Analysts are as Positive About Rivian

As the market reacts to analyst targets, Rivian's stock could indeed be at a critical juncture where discerning investors could take positions, anticipating substantial returns as projected by various analysts.

In stark contrast to Piper Sandler's optimistic view, Morgan Stanley has taken a different stance on Rivian's share price, lowering their price target from $14 to $13 but maintaining an overweight rating. Morgan Stanley also envisage that by 2030 Rivian's revenues to grow by 36%, at a compounded annual growth rate between 2023 to 2025, selling at least 317,000 battery electric vehicles annually in 2030.

UBS have also taken the same stance as Morgan Stanley, but fully downgraded Rivian's stock from Buy to Sell, dropping the price target to just a third of the previous mark. This drop in price target from $24 to $8 is a wild swing in the stance of UBS and suggests that there is less excitement surrounding battery electric vehicles.

Consensus has the Rivian share price target set in at $17.67, almost 75% up on the current price, but any road there will not be without bumps. The lowest mark of $9, set against the high bar of $36 only goes to show the real disparity in views on Wall Street when EVs are concerned.

The automotive landscape is, undoubtedly, witnessing a transformation, and Rivian's role in this shift could either just be getting started, or could stall out. With such a wide range of forecasts on the table, RIVN stock has some strong believers on the Street, but is definitely not one for the feint hearted.