Wall Street’s biggest banks remain optimistic on electric vehicle maker Rivian, predicting that the company could still become Tesla’s next big competitor, despite the stock’s massive run from its blockbuster IPO in early November. .
A few major firms began coverage of Rivian on Monday, with many forecasting that the electric vehicle maker might actually be the real deal and eventually compete with billionaire Elon Musk’s Tesla.
Morgan Stanley analyst Adam Jonas cited Rivian’s compelling products, good management team, access to capital and its strategic relationship with Amazon, writing, “We see it as ‘the one’ that can challenge Tesla.” “
The firm argues that Rivian has an advantage in an “underserved” area of the market with its electric delivery van, setting a price target of $147 for the stock, up about 35% from Rivian’s current price.
Several other firms, including Bank of America, Piper Sandler, Deutsche Bank and Mizuho, are also bullish on the company’s business plan and attractive product, according to recent analyst notes.
Some Wall Street banks refrained from issuing “buy” ratings and remained neutral on Rivian, however: Goldman Sachs analysts, for example, believe that despite the company’s huge growth potential, some of its advantages are “absolute”. offset by evaluation”.
JPMorgan, which also began coverage with a neutral rating, argued that Rivian’s “compelling” growth prospects are balanced by a significant capital requirement and high valuations to fund growth that is “clearly already very high”. higher pricing”.