Rivian Automotive (NASDAQ:RIVN) stock has been designated as the “best idea for 2024” by Robert W. Baird analyst Ben Kallo. The analyst reiterated a Buy rating and price target of $30 on RIVN stock on December 28. Rivian stock outperformed the broader markets and gained over 35% in 2023.
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Rivian designs and manufactures electric vehicles and related accessories. The company also offers insurance, maintenance, repair, charging solutions, and vehicle resale services.
Kallo believes Rivian is well-positioned for a strong year with several potential catalysts. The analyst is optimistic about the company’s efforts to increase production, develop in-house parts, and improve supply chains. He expects these factors will help RIVN’s gross margin become positive by the end of 2024. In addition to this, Kallo anticipates that the company will witness delivery growth in Q4 2023 and Q1 2024 as production levels continue to rise.
Is RIVN a Buy Today?
The announcement of major deals with Amazon (AMZN) and AT&T (T) led to a significant shift in Rivian’s outlook, with investors becoming more optimistic about the company’s future. The company’s expansion into the commercial vehicle market makes it an attractive investment in the EV sector. Going forward, the upcoming launch of Rivian’s affordable EV model, the R2 vehicle, in 2026 is expected to boost its financials.
Rivian stock has a Moderate Buy consensus rating based on 13 Buys, seven Holds, and one Sell recommendation. Analysts’ average price target of $25.63 implies 9.25% upside potential from current levels.
