Rivian Could Be Next Big M&A Target For A Legacy Automaker, Says Analyst In Bold Prediction

Benzinga2023-07-13

ZINGER KEY POINTSRivian is exposed to the two fastest growing segments, namely crossover utility vehicles and pickups, says Future fund's Gary Black.The stock trades at a discount (EV/Revenue) to ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRivian Could Be Next Big M&A Target For A Legacy Automaker, Says Analyst In Bold Prediction\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-13 19:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33211191/rivian-could-be-next-big-m-a-target-for-a-legacy-automaker-says-analyst-in-bold-pre><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ZINGER KEY POINTSRivian is exposed to the two fastest growing segments, namely crossover utility vehicles and pickups, says Future fund's Gary Black.The stock trades at a discount (EV/Revenue) to ...</p>\n\n<a href=\"https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33211191/rivian-could-be-next-big-m-a-target-for-a-legacy-automaker-says-analyst-in-bold-pre\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RIVN","symbol_name":"Rivian Automotive, Inc.","start_time":0,"source_url":"https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33211191/rivian-could-be-next-big-m-a-target-for-a-legacy-automaker-says-analyst-in-bold-pre","article_id":"1167020389","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1167020389","pubTimestamp":1689246607,"sourceInfo":{"source_id":"lsy1606299360108","name":"Benzinga"},"weMediaInfo":null,"summary":"ZINGER KEY POINTSRivian is exposed to the two fastest growing segments, namely crossover utility vehicles and pickups, says Future fund's Gary Black.The stock trades at a discount (EV/Revenue) to Luci","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"RIVN":"Rivian Automotive, Inc."},"translate_title":"Bold Prediction分析师称，Rivian可能是传统汽车制造商的下一个大并购目标","themeId":"3e24a06b134544b39ea5a7e60150983f","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RIVN":1.1},"content_text":"ZINGER KEY POINTSRivian is exposed to the two fastest growing segments, namely crossover utility vehicles and pickups, says Future fund's Gary Black.The stock trades at a discount (EV/Revenue) to Lucid and Tesla and deserves a much higher valuation, he says.Electric vehicle startup Rivian Automotive, Inc. has experienced a remarkable surge in its stock price since late June, nearly doubling in value since June 26.Future Fund Managing Director Gary Black has raised the possibility of Rivian becoming an attractive acquisition target in the EV market. What Happened: Black believes an established automotive manufacturer will acquire Rivian and utilize it as its EV platform. Unlike Lucid Group, Inc, which focuses solely on luxury sedans and addresses only 6% of the total addressable market, Rivian has a broader reach in the two fastest-growing segments: crossover utility vehicles and pickups, which together account for approximately 50% of the total addressable market.Black highlighted the potential for Rivian to enter the $40,000 to $60,000 price segment once it achieves scale with its R1T pickup truck and R1S SUV. This segment qualifies for the IRS tax credit of $3,750-$7,500, providing additional incentives for potential buyers, he said.Why It Matters: In terms of valuation, Black considers Rivian to be undervalued compared to its competitors. While Rivian currently trades at a two-times multiple of enterprise value/2024 revenue, Lucid trades at 6.3 times and Tesla, Inc. at 6.7 times. Black suggested adjusting Rivian’s enterprise value by deducting its $11 billion net cash from the market cap, resulting in an enterprise value of $15 billion. Considering the projected vehicle sales for this year, Black believes Rivian’s enterprise value should be six times that of Lucid’s $16 billion.Enterprise value per vehicle sold for 2023 would be $297,000 for Rivian, $462,000 for Tesla and $2 million for Lucid, the fund manager said.Price Action: In premarket trading, Rivian shares experienced a slight decline of 0.46% to $25.91, while Tesla climbed 0.96% to $274.60 and Lucid gained 0.84% to $7.22.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":8,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1167020389"}