UBS Upgrades Rivian to Buy Following Stock Slump and R2 Demand
UBS analyst Joseph Spak has upgraded Rivian Automotive (RIVN) from Neutral to Buy, maintaining a $17 price target. The upgrade comes after a 19% decline in stock price driven by broader electric vehicle market concerns. UBS suggests the sell-off presents a buying opportunity, citing strong consumer interest evidenced by over 103,000 demo drives in Q3 and high demand for the more affordable R2 SUV. The company is transitioning from luxury models toward the mainstream market with the R2, priced near $45,000. While Rivian faces significant capital expenditures for its new Georgia factory—projecting negative free cash flow of $3.7 billion in 2027—UBS notes that the company's $13 billion in available capital should sustain operations through 2029. Future growth is also tied to software revenue from the Autonomy+ service.
Topics: Automotive Industry Electric Vehicles Equity Research Stock Upgrade
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Part of the story UBS Upgrades Rivian to Buy Following Stock Slump and R2 Demand (3 articles)