- Wedbush analyst Daniel Ives reiterated an Outperform rating on the shares of Rivian Automotive Inc RIVN with a price target of $45.00.
- The analyst said Rivian's deal with Mercedes-Benz last week on a joint venture to produce electric vans in a new electric-only manufacturing facility in Central or Eastern Europe is a smart strategic move by Rivian to penetrate Europe.
- Ives said the deal would help Rivian ramp up the EDV platform's production to meet its long-term growth and profitability targets.
- Also Read: Tesla China's Strong August Comeback, Rivian To Drive Across The Atlantic, Talent Drain At Lucid: Week's Biggest EV Stories
- RIVN has now placed itself well to navigate near-term supply chain headwinds while extending its brand exposure overseas, added the analyst.
- While the deal expands its brand exposure to international customers, Rivian has a competitive advantage over the competition due to its financial backing from Amazon.Com, Inc. AMZN and its flagship 100,000 vehicle commercial delivery contract.
- Ives believes Rivian is primed to capture the massive influx of current and future EV demand and has the potential to be a major EV stalwart over the next decade.
- Price Action: RIVN shares are trading higher by 3.04% at $38.69 on the last check Monday.
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