What happened
Rivian (RIVN +0.34%) stock is getting some attention from Wall Street today, and the market is taking note. Investors are driving shares of the electric pickup truck manufacturer into their portfolios after learning that an analyst sees increased upside for the stock.
As of 11:07 a.m. ET, shares of Rivian have risen 4.1%, giving back some of the 5.4% gain they had made earlier.
NASDAQ: RIVN
Key Data Points
So what
Believing that shares have room to run, Vijay Rakesh, an analyst at Mizuho, hiked the price target on Rivian's stock to $30 from $27, maintaining a buy rating. Based on yesterday's closing price of $24.69, Rakesh's price target implies upside of almost 22%. According to TheFly.com, Mizuho is encouraged by Rivian's recent performance and believes that the company could surpass the 2023 delivery forecast of 50,000 vehicles.
While one analyst's bullish opinion of where a stock is headed could motivate some investors to pick up shares, a consensus among analysts can have a synergistic effect on investors. This seems to be the case with Rakesh's $30 price target since other analysts have recently adopted the same view. Last week, an analyst at Barclays lifted his price target to $30 from $22, and Wedbush raised its price target to $30 from $25 on July 7.
Now what
Growth investors who recognize Rivian as a compelling opportunity will certainly be encouraged to hear the growing chorus of analysts espousing the belief that the stock is headed to $30. Blindly following analysts, however, is a risky proposition since Wall Street frequently adopts a short-term view when setting price targets. Those weighing whether Rivian belongs in their portfolios should instead focus on more substantive details regarding the company's progress -- such as those that will be delivered when Rivian reports second-quarter 2023 financial results in the coming weeks.
