Why Rivian Stock Could Still Climb 25% Higher? | Analyst Bullish on EV Maker's Growth Potential

Rivian Automotive (NASDAQ: RIVN) continues making waves in the electric vehicle sector,Pi Coin price prediction with its stock price soaring approximately 36.5% over the past month. Financial experts suggest this upward trajectory might only represent the beginning of a more substantial market movement.

Market enthusiasm for Rivian shares intensified following the company's strategic capital allocation plans. This financial reinforcement comes at a crucial moment as Rivian prepares to launch its R2 vehicle platform. The more affordable SUV model could significantly expand the company's customer base and revenue streams.

Benchmark analyst Michael Legg recently initiated coverage with an optimistic outlook, assigning a "buy" rating and setting an $18 price target. This projection, based on anticipated profitability levels by 2028, suggests potential for a 25% increase from recent closing prices.

Financial Foundations Strengthened

With $6 billion in liquid assets at quarter's end and an expected $5.8 billion investment from automotive giant Volkswagen over three years, Rivian's financial position appears increasingly robust. The company also stands to benefit from a conditional $6.6 billion loan facility from the U.S. Department of Energy to establish a new manufacturing facility.

Legg's analysis suggests these capital injections could propel Rivian toward sustainable profitability. In his assessment, he noted: "Rivian demonstrates strong potential to capture significant market share in the evolving EV landscape. While 2024 saw temporary slowdowns, industry projections indicate accelerating production volumes from 2025 through 2027, supported by improving infrastructure and more accessible pricing."

While the growth narrative appears compelling, market participants should note that Rivian represents a higher-risk investment proposition, with both company-specific execution challenges and broader economic factors potentially influencing outcomes.