Rivian: The Next Leg Higher Is Still Ahead
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Danil SeredaInvesting Group LeaderFollow5ShareSavePlay(12min)Comments(4)SummarySince my Hold-to-Buy upgrade, Rivian surged 42%, doubling the S&P’s gain. I still see bullish momentum and underappreciated margin expansion ahead.RIVN's Q3 gross profit turned positive, COGS per unit fell to ~$96,300, and margin expansion is now more visible as scale increases.The AI & Autonomy Day revealed a vertically integrated autonomy stack and in-house silicon, supporting recurring revenue and cost reduction.Rivian trades near 3.6x sales, under 2x two-year forward. If FY2027 sales prove 5-10% higher, unchanged multiples imply ~2x upside by 2027 from today's price.I decided to leave my "Buy" on RIVN unchanged. hapabapa/iStock Editorial via Getty Images Rivian Is On A Big Rise Since the time I upgraded Rivian (RIVN) stock from "Hold" to "Buy", it has gone up by 42%, which is 2x to what the S&PThis article was written byDanil Sereda14.1K FollowersFollowDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of RIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.