Piper Sandler says Rivian is well-positioned to win in a future dominated by robotaxis, which is why he’s buying the stock now. The investment firm upgraded the electric vehicle maker’s stock from neutral to overweight. They also raised their price target to $20, representing a 26% upside from Friday’s closing price. Analyst Alexander Potter wrote in a note Monday that there were three important changes that caused Rivian to reconsider its outlook on the company’s stock. “First, thanks to expensive gasoline and renewed interest in EVs, RIVN has raised its delivery guidance,” Potter wrote. “Second, Rivian appears to be avoiding issues with the launch of its all-important new product, the R2 SUV. Finally, its recent capital raise should allow it to fund growth while reducing dilution risk.” RIVN YTD Mountain Rivian’s year-to-date. Potter added that vertical integration will be key to success in a future world of robotaxis and humanoid robots, as the supply chains to move the necessary materials and goods do not currently exist. He noted that the company designs electronic control units and printed circuit boards, two critical systems for cars, in-house, which he believes puts the company on track to become a power player in the future environment and a strong position in the development of self-driving cars. In-house design also has the potential to increase profits in the future. “As volumes increase, Rivian should be able to better monetize its software and services, which is a key benefit of vertical integration,” Potter said. After the rating change, the stock price rose more than 2%. Analysts are divided on Rivian. According to LSEG, 14 of the 28 people who covered the stock rated it a “buy” or “strong buy.” Another nine gave the stock a hold rating, while the remaining five rated it underperform or sell.
