DA Davidson upgraded Rivian Automotive Inc. (NASDAQ: RIVN) to Neutral from Underperform and set a $14.00 price target, following a recent decline in the stock.
The firm said much of the recent downside had been driven by a mixed investor response to the pricing of early R2 trims, which appeared to be approximately 55% higher than some consumers had anticipated.
This pricing gap was highlighted as a risk factor that could hinder Rivian’s ability to achieve its target of delivering 20,000 to 25,000 R2 units this year and executing a successful launch in the mid-size electric SUV segment.
However, with the stock now trading at what the firm considers a more reasonable valuation, DA Davidson indicated it was stepping away from its previously more bearish stance, particularly in light of other recent developments affecting the company.
