Rivian Auto Inc. has risen nearly 60% in value since the beginning of April. However, a BNP Paribas Analyst believes that this rally could still be on its way.
James Picariello has a positive outlook for the electric vehicle maker. He cites its compelling strategy and strong execution as the key factors that may fuel further upside in RIVN’s shares this year.
Rivian’s stock is still just a little short of the high for the year to date at the moment of this writing, despite the recent surge.
Rivian Stock to Benefit from ASP Monetisation
Picariello believes in Rivian’s shares, primarily due to the fact that it continues improving its gross profits.
In a recent research note, Mr. Ayers told his clients that the Nasdaq listed firm was well positioned for the rapid changes in tariffs in the years to come.
The investment firm also recommends that you buy RIVN at the current price, as it is not willing to compromise on its average selling prices (ASPs) for volume sales of R1 in this year.
Picariello believes that ASP monetisation will help Rivian increase its gross margins in the future.
He added that this winning strategy positions the EV manufacturer well for its expected R2 launch in early 2026.
RIVN will see its shares rise as production is scaled up efficiently
BNP Paribas is still positive on Rivian despite the recent stock rally. This is because the electric vehicle company has received a $6.6 Billion loan from US Department of Energy to build its second and production facilities in Georgia.
In their recent report, James Picariello and his team of analysts argued that this funding will allow RIVN’s production to be scaled up efficiently.
In May, Irvine’s firm announced its first-quarter financial results that easily exceeded Street expectations.
Experts had predicted a loss of 76c per share and revenue of $1.01bn for the first quarter. The EV manufacturer lost 41c on $1.24bn.
At the time this article was written, Rivian did not pay dividends.
Do you think it is worth investing in Rivian?
James Picariello was impressed with Rivian’s current cash position which is better than its debt.
The bullish outlook on the EV was based in part on the clear path to a sustainable free cashflow.
The analyst at BNP Paribas is confident that RIVN will continue to grow as it continues to use its liquid sources to increase and expand, such as its partnership with Volkswagen.
He reiterated on Monday his “outperform rating” for Rivian and raised the target price to $20. This indicates a potential gain of 23% over current levels.
The consensus of Wall Street analysts is that they do not share the same optimism as him about the EV Company, since the rating currently only sits at “hold”.
The post Rivian’s winning EV Strategy in 2025 may change as new information becomes available.
