UBS Upgrades Rivian to Buy Rating Amid R2 Potential
UBS analyst Joseph Spak has upgraded Rivian Automotive (RIVN) from neutral to a buy rating, despite maintaining a $17 price target. The upgrade stems from a perceived disconnect between the company's recent stock decline and the significant market potential of its upcoming R2 platform. Analysts view the recent 19% dip in share price as an attractive entry point ahead of expected improvements in production and automotive gross margins. While Rivian reported a $80 million automotive gross loss in the third quarter, the company's software and services segment helped maintain overall positive gross profit. The investment thesis relies on whether Rivian can scale R2 production effectively to drive volume while simultaneously improving manufacturing efficiencies to turn its core automotive business profitable.