5 Most Promising Car Stocks According to Analysts

In this article, we will take a look at the 5 most promising car stocks according to analysts. To see more such companies, go directly to 11 Most Promising Car Stocks According to Analysts.

5. Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 29

One-year Average Price Estimate: $31.75

California-based EV company Rivian Automotive, Inc. (NASDAQ:RIVN) ranks 5th in our list of the most promising car stocks according to analysts. Earlier this month, Rivian Automotive, Inc. (NASDAQ:RIVN) shares jumped after the company priced its $1.3 billion debt offering.

BofA analyst John Murphy said in a note that the capital raise was expected but it came sooner than expected. The analyst said Rivian Automotive, Inc. (NASDAQ:RIVN) went for the capital raise earlier than expected to ensure “financial resources are sufficient to bridge the company to profitability and avoid larger last minute financing rounds, which may prompt nervousness across the investor base.”

The analyst has a Buy rating on Rivian Automotive, Inc. (NASDAQ:RIVN) shares and a $40 price target, which presents solid upside from the current levels.

At the end of the fourth quarter of 2022, 29 hedge funds reported having stakes in Rivian Automotive, Inc. (NASDAQ:RIVN). The total value of these stakes was $945 million

Baron Asset Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2022 investor letter:

“Consumer Discretionary investments along with the lack of exposure to the strong performing Energy sector offset a portion of the above-mentioned gains. Within Consumer Discretionary, the underperformance of electric vehicle (EV) manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN) coupled with lower exposure to this better performing sector hampered relative results. Rivian’s shares fell as investors fretted over the company’s unit economics and how macroeconomic uncertainty is impacting the EV industry.

Rivian Automotive, Inc. is an EV manufacturer producing vehicles for the consumer and corporate delivery van markets. Its shares were under pressure during the quarter. Investors remained focused on the company’s execution challenges, the implied unit economics for its vehicles, and near-term headwinds for the automotive industry stemming from a weaker global economy. Despite these headwinds, we are comfortable with Rivian’s liquidity position and its competitive position within the EV industry, which we believe will continue to grow at impressive rates. Rivian should also benefit from its positive product reviews, its integrated technology approach, and its industry partnerships.”