Home / Business and Economy / Rivian Shares Bounce Amid Cautious Optimism
Rivian Shares Bounce Amid Cautious Optimism
15 Jul
Summary
- Rivian shares rose 1% on Tuesday, driven by analyst optimism.
- Morgan Stanley maintained an Underweight rating but raised its price target.
- Recent equity offering caused significant stock dilution of approximately 6%.
Rivian Automotive Inc. (RIVN) shares closed Tuesday up 1%, influenced by Morgan Stanley analyst Andrew Percoco's cautiously optimistic outlook. Percoco raised his price target to $13 from $12 while reiterating an Underweight rating, citing Rivian's strong second-quarter deliveries, raised guidance, and recent equity raise as positive factors.
Despite this, the stock's trading session was volatile, experiencing a dip due to unconfirmed rumors of peer EV maker Lucid Group contemplating bankruptcy or a take-private deal. Lucid has since denied these claims, stating sufficient liquidity.
Rivian is scheduled to announce its second-quarter financial results on July 30. Earlier in July, the company reported 12,194 deliveries for the second quarter, significantly surpassing its previous guidance. Furthermore, Rivian completed a $1.32 billion equity offering, selling 86.25 million Class A shares at $15.50 each to fund general corporate purposes, including contributions for R2 production and its Georgia plant. This offering resulted in approximately 6% dilution.
Retail sentiment on Stocktwits remained bullish for RIVN over the past 24 hours, though concerns about cash burn, similar to Lucid's situation, were noted by some users.
