Rivian’s stock quotes are expected to arrive this week. What there is to know.
It’s been a mad rush for
investors since the electric vehicle maker went public last month. Things could get even crazier.
The company’s analyst ratings are expected to arrive this week – and if history is any guide, many of the new ratings should help the stock.
But Rivian (ticker: RIVN) isn’t really sick. The company is valued at around $ 100 billion, or more than
(GM). Still, its shares are down about $ 2 from where they opened on November 10. Investors who bought stocks when Rivian made his Nasdaq debut are down, although the stock is still significantly above its IPO price of $ 78.
Counting his IPO day, Rivian had an incredible five-day winning streak, during which his stock peaked at $ 170.47. But stocks closed 5.5% lower on Friday at $ 104.67 each, while many other high-valued stocks slipped. The
fell by 1.9% and 0.8% respectively.
While it might sound odd, the Rivian stock might need a boost – and Wall Street might need it. Brokers involved in an IPO have to wait around 25 days to initiate hedging for a stock, and they usually give optimistic opinions after a company has gone public.
(UBER): The rideshare company sold shares to the public on May 10, 2019. Seventeen brokers launched a hedge on June 4, 2019. Only one of these brokers was launched with a hold rating, the rest were purchases. At the time, the average analyst target price for Uber stock was around $ 56. But the shares were trading at around $ 43 each, below Uber’s IPO price of $ 45. Rivian stock, meanwhile, is still 34% higher than its IPO price.
It’s also worth taking a look at two electric vehicle producers,
(LI). When the two Chinese companies sold shares to the American public last year, analysts took a positive view even though it took some time to establish a hedge.
Li Auto’s IPO was the first: the company sold shares for $ 11.50 each on July 30, 2020. Only a few analysts started covering the company at the end of August of the same. year after the end of the period of calm. They all gave buy ratings, with the average price target predicting $ 21 per share. Li stock was trading at around $ 17 at the time.
XPeng’s IPO took place on August 27, 2020, when the company sold shares at $ 15 apiece. Only one analyst launched a cover on September 21, 2020, JP Morgan’s Nick Lai: He gave XPeng’s stock a buy rating and a price target of $ 27. XPeng stock was trading at around $ 18 at the time.
It is still unclear where analysts will stumble upon Rivian. It’s highly valued, but so was Uber, which had a market cap of around $ 70 billion when it went public. GM was worth around $ 54 billion at the time of Uber’s IPO, while
(TSLA) was worth less than $ 45 billion.
As for Tesla’s IPO in 2010, the company sold shares at an adjusted price of $ 3.40 each. Only one analyst, Patrick Archambault of Goldman Sachs, rated Tesla after the period of calm for the title. He gave it a Hold rating and a target price of $ 4.20.
That was a long time ago, and electric vehicles are much more popular now. For Rivian, it wouldn’t be surprising to see more buy than keep notes, and the sell notes would be very surprising.
Write to Al Root at [email protected]