Rivian Automotive jumps to three-month high after Benchmark says its EV future is bright

Rivian Automotive (NASDAQ:RIVN) is on watch after Benchmark laid out the bull case on the electric vehicle stock amid broad investor concerns about a potential pullback in government support for the industry.

The firm initiated coverage of Rivian (RIVN) with a Buy rating. Analyst Mickey Legg and his team believe Rivian (RIVN) is well positioned to gain significant share of a massive market opportunity in the coming decade. “After a pause this year, domestic EV production is expected to improve in 2025 and further accelerate in 2026-27 as ASPs decline and the charging infrastructure is built out,” he highlighted.

Looking ahead, Rivian (RIVN) was noted to appear particularly well-positioned with contracts with Amazon (AMZN) and Volkswagen (OTCPK:VLKAF), highly rated models on the market, and expected positive gross profit in the current quarter. Benchmark also thinks the commercial segment provides a revenue base for Rivian (RIVN) to build upon as it scales the consumer side.

Benchmark’s price target on Rivian (RIVN) of $18 is based on 11.8X 2028 EBITDA of $1.9B, which compares to blended peer group median and mean 2028 multiples of 6.3X and 17.2X, respectively. Rivian (RIVN) is seen deserving the premium valuation due to its differentiated technology, unique products, strong management, and brand reputation.

Shares of Rivian Automotive (RIVN) opened with a 7.7% gain on Monday following the Benchmark nod.