What happened
Investors continue to keep the pedal to the metal with Rivian Automotive (RIVN -2.24%) stock. Climbing higher in today's trading session, shares of Rivian are poised to log their ninth consecutive day of gains. While the electric vehicle company hasn't reported anything to drive the gain, an analyst's optimistic outlook on Rivian's stock is powering investors' enthusiasm.
As of 12:57 p.m. ET, shares of Rivian are up 2%, retreating from their earlier rise of 7.6%.
So what
Growing increasingly bullish on shares of Rivian, Dan Levy, a Barclays analyst, hiked the stock's price target to $30 from $22, maintaining an overweight rating on the stock. Based on Friday's closing price of $24.70, Levy's price target implies upside of about 34%. Levy's expectation of where Rivian's stock is headed is consistent with another recent analyst's price target of $30 that was reported on Friday.
Now what
While there seems to be a small consensus building among analysts that Rivian's stock is headed to $30, the expectation isn't unanimous. Michael Shlisky, an analyst at D.A. Davidson, is more circumspect about the road that lies ahead for the electric pickup truck manufacturer; Shlisky has an $18 price target on the stock.
It's important for investors to recognize that blindly following the opinions of analysts is risky. Analysts don't specify the time horizons upon which their price targets are based, and, oftentimes, the price targets are set with shorter time horizons in mind. For those interested in going for a ride with Rivian stock, therefore, a more sound approach is to thoroughly investigate the company's fundamentals, analyzing its strengths, weaknesses, opportunities, and threats.
