Rivian (RIVN) shares caught the attention of investors on Monday after Benchmark made a bullish call on the Electric vehicle manufacturer. The firm initiated coverage with a Buy rating and highlighted Rivian’s strong position to capture a major slice of the growing electric vehicle market over the next decade, which eased worries about shrinking government support for EVs.
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4.6-star analyst Michael Legg noted that while EV production paused this year, growth is expected to pick up in 2025 and accelerate further as prices drop and charging infrastructure expands. Furthermore, Benchmark sees Rivian’s partnerships with Volkswagen (VWAGY) and Amazon (AMZN), along with its top-rated models and expected gross profit this quarter, as key strengths.
The firm believes Rivian’s commercial vehicle contracts provide a reliable revenue base that will support growth in its consumer segment as the company scales operations. With a price target of $18, Benchmark values Rivian at 11.8x its projected 2028 EBITDA of $1.9B and argues that it deserves a premium valuation thanks to its standout technology, unique product offerings, and strong brand. As a result, Rivian shares jumped on Monday following the upbeat outlook.
Rivian Recently Secured a $6.6B Conditional Loan
Today’s bullish call from Benchmark builds on Rivian’s recent conditional approval for a $6.6 billion U.S. Department of Energy loan to build its Georgia plant, where it plans to produce its affordable R2 SUVs and R3 crossovers starting in 2028. To secure the loan, Rivian must meet several conditions, which include not opposing unionization efforts.
The firm is looking to secure this loan before the Trump administration takes office since federal EV credits face potential cuts. The project is expected to create 7,500 operational jobs and 2,000 construction jobs by 2030 and will boost Rivian’s market presence and the local economy after earlier financial constraints delayed construction.
Is RIVN Stock a Buy or Sell?
Overall, analysts have a Moderate Buy consensus rating on RIVN stock based on nine Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 23% decrease in its share price over the past year, the average RIVN price target of $15 per share implies 3.1% upside potential.
