Share of Rivian Automotive Inc (NASDAQ:RIVN) are 4.6% higher to trade at $12.72 this morning, after UBS upgraded the EV name to "buy" from "neutral," maintaining its $17 price and citing the company's stellar third-quarter earnings report. Demand for its R2 vehicle and Rivian's cash health were also factors. The upgrade is overshadowing a price-target cut from Deutsche Bank to $20 from $24.
Just last week Rivian posted a third-quarter beat-and-raise, bouncing off its Oct. 29 annual low of $11.37. Shares are now testing $13, looking to log its highest close in two weeks. Overall though, RIVN has struggled on the charts this year, off 33%.
Analyst sentiment is split heading into today; 15 of the 27 brokerages covering RIVN sport a "hold" or worse rating, so there's plenty of room for more upgrades.
Options traders have been more optimistic. RIVN sports a 50-day call/put volume ratio of 4.34 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX). This ratio ranks in the 91st annual percentile, meaning options traders have rarely been more bullish over the past 12 months.
Options are looking affordable, too. This is per the stock's Schaeffer's Volatility Index (SVI) of 63%, which ranks in 23rd percentile of its annual range
