Rivian Automotive ‘s stronger-than-expected results could mean “accelerating growth” from here, though concerns remain for the electric vehicle maker, according to some Wall Street analysts. Shares popped 6% in premarket trading Wednesday after the company posted a narrower-than-expected first-quarter loss and said it’s on pace to produce 50,000 vehicles in 2023. For some analysts, the results were encouraging. Rivian, which made its initial public debut in 2021 , has cratered in the years since as it deals with rising interest rates that dimmed its growth prospects, as well as supply chain issues. On its first day on the Nasdaq, Rivian was valued at $86 billion. Today, it has a market cap of $13 billion. It fell 82% in 2022, and it’s down by 24% this year. Canaccord Genuity’s George Gianarikas said “that may now be changing,” maintaining his buy rating on the stock. He also kept a $40 price target, implying the stock can nearly quadruple, jumping 188% from Tuesday’s close. “1Q23 results were mostly better than expected, particularly from a profitability perspective,” Gianarikas said to clients in a Tuesday note. “We believe Rivian is on its way to capturing its fair share of the EV market via a thoughtful vertically integrated strategy. We see the R1S as the family (electric) SUV of choice and likely to see accelerating growth as more vehicles hit the streets,” Gianarikas added. Meanwhile, Morgan Stanley’s Adam Jonas kept an overweight rating on the stock, with a $24 price target. “Rivian 1Q EBITDA loss beat expectations, ending 1Q with over$11bn of cash. A welcome sign of self-help to create more time for strategic adaptation,” Jonas wrote. However, Wells Fargo’s Colin Langan reiterated an equal weight rating, saying that “cash burn remains a concern” even as the company has worked to improve its spending. He has a $14 price target on the stock. “Q1 showed q/q improvement in cost, but significant progress remains to reach their positive 2024 gross margin market,” Langan wrote on Tuesday. —CNBC’s Michael Bloom contributed to this report.
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