Cantor Fitzgerald analyst Andres Sheppard raised the firm’s price target on Rivian Automotive (RIVN) to $20 from $15 and keeps an Overweight rating on the shares after the company announced a joint venture with Volkswagen (VWAGY) with up to a $5B investment. As a result of the agreement, the firm expects Rivian will be able to extend its cash runway, achieve additional cost savings, and to improve its margin profile over the medium to long term. Rivian should now be able to extend its cash runway into 2026, which is significant, since management is targeting the start of production of its R2 Line in the first half of 2026, the analyst tells investors in a research note.
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