Given that the stock price of Rivian Automotive (NASDAQ:RIVN) is currently trading close to its cash value, Morgan Stanley restated its Overweight rating and $26.00 price objective for the company.

MS analysts stated in a note, “It might be tempting to open your Excel model and try to figure out “what’s in the price” while subjectively adjusting inputs like top line growth, margins, capex ratios, WACC, and other things when you see an auto stock trading at or near a negative enterprise value. The stock undervalues ongoing cash burn that lasts years rather than quarters. We believe the stock market employs a slightly more direct strategy than simply attempting to solve for one operating variable.”

Morgan Stanley held discussions with investors following Rivian’s 4Q conference call and notes not just the preponderance of negative sentiment around the name, but also frustration around strategy and lack of conviction in the company’s strategic direction. Yet, the company’s unique offering, scalable end markets, potential for cost-cutting, cash position, and valuation continue to persuade Morgan Stanley.

The analysts stated, “We acknowledge it may take the company several quarters to create an execution track-record to reestablish trust with investors that is required to invest in its long term growth strategy. “Rivian remains the only EV start-up name we suggest inside our US coverage, other from OW-rated Tesla (NASDAQ:TSLA).”

Shares of RIVN are up 0.22% in pre-market trading on Wednesday.