Rivian NASDAQ:RIVN shares climbed about 5% after Stifel raised its price target on the electric vehicle maker to $22 from $20 while reiterating its Buy rating, citing stronger second-quarter deliveries and updated financial expectations.
Stifel revised its outlook to reflect Rivian's second-quarter vehicle deliveries, preliminary revenue expectations, and the company's recently completed 75 million-share equity offering. The brokerage said the upcoming launch of the R2 vehicle is expected to become an important growth catalyst by supporting higher production volumes over time.
The firm maintained its Buy recommendation, saying the revised target incorporates Rivian's latest operating performance and capital raise. Rivian recently priced the equity offering at $15.50 per share, with the transaction expected to generate roughly $1.2 billion in gross proceeds before expenses.
The additional capital is expected to support Rivian's expansion plans as it prepares for the R2 rollout. Shares of Rivian jumped following the analyst update, recovering after recent volatility tied to the company's share sale and financing activities.