Telecommunications giant AT&T (NYSE:T) has teamed up with electric vehicle (EV) maker Rivian (NASDAQ:RIVN). As part of a pilot program, AT&T will purchase Rivian’s EVs to reduce costs, improve safety, and lower its carbon footprint. AT&T expects to add Rivian’s commercial van and R1 vehicles to its fleet in early 2024.
At the same time, AT&T has secured the exclusive rights to provide connectivity to all Rivian vehicles in the United States and Canada. Leveraging AT&T’s connectivity, Rivian will improve its vehicles, introduce new features, and enhance the overall driving experience for its customers. Moreover, this is also Rivian’s first deal to sell its commercial vans to other customers after ending its exclusivity pact with Amazon (NASDAQ:AMZN) last month.
While the partnership will benefit both of these companies, let’s explore what the Street recommends for their share price.
What is the Prediction for AT&T Stock?
AT&T is focusing on enhancing its operational efficiency and reducing network costs. Moreover, it is investing in expanding its broadband network. In addition, the company is reducing debt at an accelerated pace. During the third quarter, it lowered its net debt by over $3 billion. The measures are expected to support its financials and share price.
AT&T stock has eight Buy and eight Hold recommendations for a Moderate Buy consensus rating. Further, analysts’ average AT&T price target of $20.27 implies 21.74% upside potential from current levels.
Is Rivian Stock a Buy, Sell, or Hold?
The end of the exclusivity pact with Amazon will enable Rivian to sell its vehicles to other customers, which is positive. Further, its efforts to drive cost efficiency, ramp up production, and invest in differentiated technologies bode well for future expansion. However, macroeconomic and geopolitical pressures remain a short-term drag.
With 13 Buy, seven Hold, and one Sell recommendation, Rivian stock has a Moderate Buy consensus rating. Further, the average RIVN stock price target of $25.63 implies 14.27% upside potential from current levels.
