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According to one Wall Street firm, Rivian (NASDAQ:RIVN) may be a stock to buy for the 2024 electric vehicle (EV) race. Known for producing electric trucks and SUVs, this company is still recovering from a difficult month. Still, even though demand for expensive EVs has been struggling lately, Cantor Fitzgerald sees Rivian as having significant growth potential. The firm recently upgraded its rating on RIVN stock and reiterated a bullish price target.
Shares of Rivian have been rising since this news broke, but there’s an important takeaway from this development that investors shouldn’t ignore. The market for higher-priced EVs isn’t dead yet. In fact, it may rebound in the coming year.
Does this mean that all EV producers will see a surge in 2024 as market conditions shift back in their favor? Not necessarily. Let’s take a closer look.
What’s Happening With RIVN Stock?
Even with the recent upgrade, RIVN stock has been fairly volatile since markets opened. Shares are currently up 0.5% for the day. After a difficult month, RIVN stock could certainly use the momentum, too. As Cantor Fitzgerald sees it, a turnaround is likely imminent for the EV producer — and that could have broader implications for the EV sector as a whole.
Cantor upgraded RIVN stock from a “neutral” rating to an “overweight” rating and maintained its bullish price target of $29 per share. That represents upside potential of almost over 80% from current prices. The firm cited Rivian’s partnership with Amazon (NASDAQ:AMZN) as a key aspect of its optimistic take, noting that this could potentially take RIVN stock even higher.
“If the company is able to deliver >70,000 EDVs, this would result in further upside that we currently do not include in our model, and we believe that it could potentially reach up to ~$7.4B in revenue through 2032E,” Cantor Fitzgerald analysts stated in a note to investors.
Rivian remains generally popular among Wall Street firms. Out of 21 analysts tracked on TipRanks, 13 currently maintain buy ratings on the stock while only one calls the stock a sell. In just this month, several other firms have reiterated their bullish stances on RIVN stock as well. For example, analyst Chris Pierce of Needham reportedly flagged Rivian as an “undervalued opportunity” with “attractive risk/reward potential.”
Rivian vs. Competitors
InvestorPlace contributor Larry Ramer has issued a similar take on RIVN stock, noting that the declining brand power of Tesla (NASDAQ:TSLA) may create a key opportunity for Rivian. This point should highlight something important for investors: While Rivian is well-positioned to continue making progress in 2024, not all luxury EV stocks are created equal.
Expanding market share is often a zero-sum game and Rivian’s success will likely come at the expense of other automakers. Thankfully for Rivian, Tesla is struggling lately after disappointing third-quarter deliveries and its future looks highly uncertain as analysts turn against TSLA. The fact that Wall Street is still bullish on RIVN stock, however, should reassure investors that shares can turn around in the new year.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.