- Summary:
- Rivian stock price has been boosted by aggressive financial injection in recent weeks, with analysts revising upwards their price targets.
Rivian stock price has emerged from the shadows recently, grabbing investors’ attention with successive daily gains. The EV maker’s stock price was on a five-session winning streak prior to the 2.7% decline on Tuesday, underlining a searing bullish momentum.
Rivian stock price fundamentals signal upside
Rivian (NASDAQ: RIVN) has gained 38% in the last month, including 18% in the most recent five sessions. The company’s fundamentals have taken a sharp uptick in recent weeks, with significant capital inflows from Volkswagen and the US Department of Energy.
German vehicle manufacturing giant announced in late November a joint venture with Rivian valued at $5.8 billion, set to run for the next three years. The Department of Energy followed up with a $6.57 billion conditional loan offer to help the company build a manufacturing plant in Georgia. The sum of the two investments are slightly lower than the company’s $14 billion market capitalisation value.
The two developments have seen analysts revise their price targets for Rivian stock price. According to TipRanks, 21 analysts covering the stock have their price target at $15.71, with a rating of “Moderate Buy”. In addition, the highest price target is at $23, implying a 39% upside from the current price.
Meanwhile, Rivian says its cheapest model yet, the R2, will hit the market in 2026. The vehicle will have a $45,000 price tag-putting it the same price bracket with the majority of Rivian rivals in the EV market. All of Rivian’s existing models currently in the market cost upwards of $70k, locking out majority of potential buyers. The successful launch of the R1 model could trigger a substantial surge in Rivian stock price.
Rivian stock price prediction
Rivian stock price pivots at $14.25 and the downside will prevail if resistance persists at that level. Conversely, moving above that level will shift the momentum to the upside.
Resistance: The first hurdle will likely be at $14.40. An extended upward momentum could lift the price further to test $14.60.
Support: The first support will likely be at $14.12. However, a stronger downward momentum could break below that level. Such a move will invalidate the upside narrative and extend the decline to test $14.00.
