Wedbush analyst Daniel Ives raised the firm’s price target on Rivian Automotive to $40 from $30 and keeps an Outperform rating on the shares. After “brutal production woes” since its initial public offering, the Rivian story “is now finally starting to turn the corner” with positive supply news heading into the second half of 2022, Ives tells investors in a research note. The company announced Q2 production of 4,401 units and deliveries of 4,467 units, which were both above Street consensus and a “much needed confidence boost for the story after the malaise seen over the past 9 months,” writes the analyst. Ives finds it important that Rivian management reiterated that the company is on track to meet the guidance of 25,000 vehicles produced in 2022. He believes Rivian is “beginning to gain some Street credibility” and that demand story for its trucks “remains firm.”
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