RIVN Stock Upgraded By UBS – Firm Calls 19% Sell-Off A Buying Opportunity Ahead Of R2 Ramp

• The firm said initial demand for Rivian’s R2 looks solid, potentially supporting demand as the automaker introduces additional trim levels, according to The Fly.
• UBS sees Rivian’s higher-margin software and services business supporting growth, and does not expect the automaker to need additional capital before 2029, according to Investing.com.
• According to Koyfin data, 13 of the 25 analysts covering RIVN rate the stock ‘Buy’ or ‘Strong Buy’, while seven rate it ‘Hold’ and five rate it ‘Sell’ or ‘Strong Sell’. 

Rivian Automotive (RIVN) was in focus on Monday after UBS upgraded the stock to ‘Buy’ from ‘Neutral,’ while maintaining its $17 price target.

According to The Fly, analyst Joseph Spak cited valuation and viewed Rivian’s 19% sell-off over the past month as a buying opportunity ahead of an inflection in the R2 production ramp and automotive gross margins.

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RIVN shares traded 3.3% higher in premarket trading at the time of writing. 

R2 Demand And Margin Outlook

UBS said initial demand for Rivian’s R2 looks solid, which could bode well as the automaker introduces additional trim levels, according to The Fly. The firm believes automotive gross margins should improve as R2 production ramps up.

According to a report published by Investing.com, UBS sees Rivian’s higher-margin software and services business helping fund its growth. The firm also views Rivian’s Autonomy+ point-to-point driving service as a potential competitor to Tesla’s Full Self-Driving technology in the U.S., with a planned December Autonomy Day and an early 2027 customer launch serving as potential catalysts.

UBS estimates that Rivian has $13 billion in total available and targeted future capital and does not expect the company to need additional capital before 2029, the Investing.com report added.

Analysts Split On Rivian After Q3 Results

Last week, several analysts adjusted their Rivian price targets following the company’s third-quarter results, according to The Fly.

Morgan Stanley lowered its price target to $13 from $14 and maintained an ‘Underweight’ rating. According to The Fly, the analyst described the results as encouraging, citing better-than-expected underlying margins and strong R2 demand, while flagging supplier execution and rising input costs as risks to the margin outlook.

Needham cut its price target to $18 from $23 but maintained a ‘Buy’ rating, according to The Fly. The firm noted that R2 had become Rivian’s best-selling vehicle and driven much of the sequential delivery growth, while its lower target reflected pressure from rising interest rates.

However, Jefferies upgraded Rivian to ‘Buy’ from ‘Hold’ and maintained its $17 price target. Analyst Philippe Houchois cited stronger-than-expected order conversion for the high-end R2 launch trim and the model’s position in the $45,000–$55,000 EV segment between Tesla’s commoditizing models and Ford’s upcoming UEV platform, which may not ramp until late 2027. He also viewed the roughly 30% share-price correction over the previous three months as an attractive entry point, according to The Fly.

According to Koyfin data, 13 of the 25 analysts covering RIVN rate the stock ‘Buy’ or ‘Strong Buy’, while seven rate it ‘Hold’ and five rate it ‘Sell’ or ‘Strong Sell’. Their 12-month price target ranges from $10 to $25, with an average of $18.16.

How Retail Views RIVN

On Stocktwits, retail sentiment surrounding RIVN remained in the ‘extremely bullish’ territory over the past 24 hours, amid ‘high’ message volumes.

RIVN shares have dropped over 41% year-to-date.

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