Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) are rising in premarket trading on Tuesday as they react to a positive analyst action.
The Analyst: Guggenheim Securities analyst Ronald Jewsikow initiated coverage of the electric-vehicle startup with a Buy rating and a $18 price target, StreetInsider reported. The optimism is reportedly premised on a “compelling catalyst path that supports the firm’s R2/R3 optimism thesis.”
Rivian hasn’t been immune to the EV industry-wide demand slowdown, and the company is also weighed down by the huge loss incurs per EV it manufactures.
It currently sells the RIS SUV and R1T electric pick-up truck based on its first-generation platform. In March, the company unveiled its second-gen new R2 vehicles and also gave a sneak peek into the future models codenamed R3 and R3X.
The R2 EVs are more affordable than the existing Rivian lineup and will have a starting price of $45,000.
Rivian shares have pulled back sharply amid the fundamentals woes and are down a whopping 53% this year.
Price Action: Rivian’s shares climbed 1.91% in premarket trading to $11.22, according to Benzinga Pro data.
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