Why Rivian Stock Is a Buy Before February 20

Rivian Automotive (RIVN) has been a rollercoaster ride for investors, with its stock price soaring to $180 in its first week of trading in November 2021, only to plummet 78.92% by January 2025. Despite the volatility, analysts remain bullish on Rivian's long-term prospects, with an average price target of $15.29, a 13.34% increase from the current price. Here's why Rivian stock is a buy before February 20.

Strong Analyst Consensus

The average analyst rating for RIVN stock from 22 stock analysts is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months. The consensus rating is supported by a 12-month stock price forecast of $15.29, which is 13.34% higher than the current price.

Robust Financial Position

Rivian has a strong financial position, with a current ratio of 5.09 and a debt/equity ratio of 1.02. The company has a market cap or net worth of $13.77 billion and an enterprise value of $13.07 billion. Rivian's revenue for the last 12 months was $4.55 billion, with a loss per share of -$5.59. While Rivian is not yet profitable, its strong financial position and revenue growth suggest that it is on track to achieve profitability in the future.



Growing Production and Delivery Outlook

Rivian's production and delivery outlook is a critical factor driving its stock price. In Q4 2024, Rivian reported delivering 14,183 vehicles, surpassing expectations and marking its second-highest quarterly delivery volume since its initial foray into the EV market in the fourth quarter of 2021. Rivian's ability to meet its production and delivery targets, despite facing supply chain challenges, has boosted investor confidence in the company's growth prospects.

Expanding Partnerships and Joint Ventures

Rivian's partnerships and joint ventures, such as its collaboration with Volkswagen, are expected to drive growth and expand the company's reach. Volkswagen's increased investment in Rivian led to a rise in Rivian's stock price in November 2024. These partnerships can provide Rivian with access to new markets, resources, and technology, further enhancing its competitive position in the EV industry.

Valuation and Growth Potential

Rivian's stock price has decreased by -25.30% in the last 52 weeks, but its beta of 2.06 indicates that its price volatility has been higher than the market average. Despite the recent decrease, Rivian's stock is still undervalued compared to its peers. With an average price target of $15.29, Rivian's stock offers significant upside potential for investors.

In conclusion, Rivian's strong analyst consensus, robust financial position, growing production and delivery outlook, expanding partnerships, and undervalued stock price make it an attractive investment opportunity before February 20. As Rivian continues to execute on its growth strategy and deliver on its production and delivery targets, investors can expect the company's stock price to appreciate in the coming months and years.