What happened
The stock market had a good trading session on Wednesday, but Rivian Automotive (RIVN +2.01%) had a really good day. The specialty electric vehicle (EV) maker's share price rose by 3.8%, trouncing the sub-2% gain of the S&P 500 index, on a pair of positive developments.
So what
Investors are usually unhappy when an analyst cuts their price target on a stock, but that wasn't the case with Rivian on Wednesday. RBC Capital Markets' Joseph Spak made the move in a new research note that morning, slicing his level to $62 per share from the previous $75.
Spak is mainly concerned with Rivian's aim to switch over from rail to truck delivery. Change is painful, of course, and the analyst has trimmed his production and delivery forecasts for both the third quarter of this year, and for the entirety of 2023.
Still, Rivian is on target to meet its annual production goals. Spak remains bullish on the stock despite the price cut, maintaining his outperform (buy) recommendation on the stock.
Separately, an influential automobile pundit gave Rivian's R1S SUV a glowing review. Doug DeMuro, an auto aficionado whose YouTube channel has nearly 4.5 million followers, posted a video on the site breathlessly titled "The Rivian R1S Is the Most Amazing Electric SUV Yet." DeMuro was impressed with a great many features of the vehicle, and was fulsome in his praise for its performance.
The auto world was certainly paying attention -- as of late afternoon Wednesday, this very positive evaluation had been viewed nearly 508,000 times.
Now what
Rivian is a highly ambitious EV maker that successfully established a toehold in an industry niche with its R1T pickup. If more influential reviewers give an enthusiastic thumbs-up for the R1S -- which at a starting price of $78,000 is very competitive with the luxury Tesla Model X's nearly $113,000 -- the company could establish some early dominance in that category too.
