The stock of electric vehicle maker Rivian has been on a tear since its IPO in November, but a host of Wall Street's biggest banks still think the company can become a competitor toTesla.
Rivian was founded by the founder, RJ Scaringe.
Jamel Toppin is from The Forbes Collection.
Several major firms began coverage of Rivian on Monday, with several forecasting that the electric vehicle maker could in fact be the real deal and eventually compete with billionaire Musk'sTesla.
Rivian has a good management team, access to capital, and a strategic relationship with Amazon, according to Morgan Stanley analyst Adam Jonas.
The firm believes Rivian has an advantage in an area of the market that is not addressed by other companies, and has set a price target of $147 for the stock, implying around 35% upside from Rivian's current price.
Several other firms including Bank of America,Piper Sandler,Deutsche Bank and Mizuho remain bullish on the company's business plan and attractive product, according to recent analyst notes.
Some Wall Street banks stopped short of giving a buy rating to Rivian, but Goldman Sachs believes that some of the company's advantages are offset by its full valuation.
Rivian has a high valuation which is clearly already pricing in a lot, and the need for significant capital to fund that growth is balanced out by the company's attractive growth prospects.
According to analysts at Mizuho, Rivian is reinventing the EV market with its electric SUV and pickup trucks as well as its electric delivery van. The next $1 trillion electric vehicle original equipment manufacturer is a long term vision.
Contra:
Wells Fargo admitted that there is much to get investors excited about Rivian when it comes to the electric vehicle maker. Colin Langan of Wells Fargo said that Rivian's current sky-high valuation leaves little room for error for a company with almost no manufacturing record.
The key background is.
Rivian went public at a $90 billion valuation on November 10, making it one of the biggest IPOs of the year. Rivian's stock went up immediately after its public market debut, despite the fact that it has virtually no revenue yet. Rivian's stock is still up 40% from its IPO price, despite the recent share slump, and the company now has a market value of more than $93 billion.
There is a big number of $1.9 billion.
According to Forbes, the value of Rivian founder RJ Scaringe is between $10 million and $20 million. He was first outed as a billionaire by Forbes in 2020.
Rivian shares fell for the first time since the IPO.
Rivian's shares continue to move higher.
Rivian is the biggest IPO since Facebook.
