Needham adds Rivian to Conviction List, ups target to $28

Needham analyst Chris Pierce raised the firm’s price target on Rivian Automotive to $28 from $26 and reiterates a Buy rating on the shares. The firm also added the shares to its Conviction List following the better than expected Q2 production and delivery numbers. Rivian is answering the three most common questions for electric vehicle makers: is there demand for its vehicles, can the vehicles be manufactured at increasing scale, and is there leverage on per-unit costs, the analyst tells investors in a research note. The firm says the company’s recent success is also answering a fourth question – can an electric vehicle carmaker drive a positive brand halo effect ahead of launching its next generation of vehicle. Needham thinks Rivian investor sentiment should start to reflect increased confidence in its R2 vehicle, “which opens up a significantly larger” total addressable market.