RIVN Stock Gains 4% Pre-Market After TD Cowen Upgrade: Analyst Sees Strong Demand For Upcoming R2 Models

• TD Cowen raised its price target on Rivian shares to $20 from $17.
• The firm estimates that annual sales for R2 could eventually range from roughly 212,000 to 335,000 vehicles.
• Rivian plans to price the R2 SUV at roughly $45,000 with roll-out beginning in the second-quarter. 

Rivian Automotive Inc. (RIVN) received a vote of confidence from TD Cowen, which upgraded the electric vehicle maker’s stock to a ‘Buy’ rating from ‘Hold’ while lifting its price target. 

TD Cowen raised its price target on Rivian shares to $20 from $17, according to TheFly. 

R2 Growth Potential

The revised outlook comes as the firm evaluated potential demand for Rivian’s upcoming R2 vehicle platform, which could significantly expand the company’s market reach.

TD Cowen’s analysts estimate that demand for R2 could eventually range from roughly 212,000 to 335,000 vehicles. They noted that this projection may exceed current Wall Street expectations for 2027. 

Following the upgrade, Rivian Automotive stock traded over 4% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral’ territory the previous day amid ‘low’ message volume levels. 

The Affordable R2 Lineup 

The next-generation EVs are expected to target a broader, more affordable segment of the EV market than Rivian’s current R1 lineup. By expanding into a larger customer base, Rivian aims to ramp up production and improve long-term revenue growth.

Rivian plans to price the R2 SUV at roughly $45,000, cheaper than the R1 models that start around $70,000. The R2 roll-out will begin in the second-quarter (Q2). 

In its fourth-quarter (Q4) earnings call, Rivian CFO Claire McDonough noted that the operational complexity tied to the R2 rollout could put pressure on automotive gross profit in Q2 and the third quarter of 2026, even though total gross profit is expected to rise compared with the previous year.

RIVN stock has gained over 57% in the last 12 months. 

Also See: Nvidia CEO Jensen Huang Frames AI As ‘Foundational Infrastructure’ Ahead Of GTC Event Next Week

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