Rivian’s stock has an electric amount of money of upside potential.
At least that is the good word from leading Wall Street auto analyst at Morgan Stanley Adam Jonas.
The normally headline-earning Jonas — recognized for his bullish calls on Rivian rival Tesla — thinks Rivian’s stock warrants at minimum a 160% surge from stages he believes are extremely depressed.
“An IPO that preceded the December sector leading, the fact-test of provide chain bottlenecks (normal in auto land, perhaps not regular in tech land), and the intestine-check of owning husband or wife Amazon physical exercise its proper to safe EDVs from alternative vendors (Stellantis, Daimler) has shaken trader self esteem and, we consider, delivers an excellent prospect to attain publicity to a corporation, product cycle, and company product that we believe that has a larger likelihood [of] remaining a winner in this field than most other EV competition. While Rivian is at a much earlier phase in its industrial journey than Tesla, we do not see this enterprise as just a ‘concept stock’ either. The highway to ramping manufacturing will be choppy, but we count on largely because of to offer relatively than need,” said Jonas in a new analysis notice to customers.
Jonas has a $147 cost concentrate on on Rivian.
Shares are down some 48% yr-to-date to $53.94, swept up into the vicious desire rate panic pushed rout in very valued corporations not earning any income. The company went community at a value of $78 a share on Nov. 15, 2021. It strike a closing large of $172 on Nov. 16.
Not serving to current market sentiment on Rivian is a blended quarter out of Tesla on Wednesday night time, a handful of weeks eliminated from its personal earnings report.
Tesla shares plunged 12% to $829 on Thursday’s session as Tesla mentioned its enterprise would be weighed down by source chain troubles, typically as it relates to semiconductor shortages. The enterprise also explained it would not unveil any new designs this year.
Rivian’s stock plunged 10.7% in Thursday’s trading in sympathy.
The upstart electric truck maker hasn’t accomplished considerably on its part to shake off the bears, either.
In late December, Rivian stated it would delay its electric pickup and sports activities utility auto that includes larger battery packs until eventually 2023. And previously this month, Rivian uncovered it skipped its 2021 creation target by earning 1,015 EVs compared to its expectations for 1,225 pickups and SUVS.
Analysts see Rivian dropping a whopping $5.2 billion in 2022 as it ramps up manufacturing.
“When we are amazed with need for Rivian’s preliminary car or truck versions, checklist of investors, and stability sheet/liquidity position, the stock’s valuation, forthcoming level of competition in the electrical truck/SUV room, and opportunity good quality-connected fears hold us on the sidelines. In addition, we do not foresee profitability until mid-ten years at the earliest,” CFRA car analyst Garrett Nelson said in a be aware.