Rivian Automotive (NASDAQ:RIVN) shares rose more than 6% intra-day today after Guggenheim analysts initiated coverage on the company with a Buy rating and a price target of $18.

The analysts believe that despite the current negative sentiment towards electric vehicles, Rivian is well-positioned to appeal to an increasing segment of younger, tech-savvy consumers. They argue that Rivian can showcase how EVs not only offer environmental benefits but also provide a superior product experience compared to internal combustion engine (ICE) vehicles, thanks to advanced software, technology, and thoughtful design elements.

Their detailed analysis of Rivian's path to breakeven and the economic potential of its R2 and R3 models leads them to conclude that Rivian will emerge as a market leader as the EV industry recovers. The analysts advise clients to buy Rivian shares ahead of an expected positive inflection in the company's results in the second half of the year.