TLDR
- Rivian (RIVN) stock rose 3% in pre-open trading Monday to $12.55 after UBS upgraded it from Neutral to Buy.
- UBS set a $17 price target and called the 19% drop over the past month a buying opportunity.
- Q3 revenue rose 38% to $2.155 billion, and the R2 is already Rivian’s best-selling vehicle by volume.
- Jefferies also upgraded the stock to Buy with a $17 target, and Evercore ISI reiterated Outperform at $18.
- Rivian ended the quarter with more than $5.5 billion in cash and raised its 2026 delivery guidance.
Rivian (RIVN) stock rose 3% in pre-open trading Monday to $12.55. UBS upgraded the EV maker from Neutral to Buy.
UBS analyst Joseph Spak set a price target of $17. He said the recent selloff created a buying opportunity.
The stock fell about 19% over the past month. The S&P 500 slipped only 1% in the same period.
Quotes varied across sources early in the session. Investing.com showed the stock up as much as 6%, while TipRanks listed a gain of about 4%.
What UBS Sees in the R2
Spak said early demand for the R2 SUV looks strong. He thinks lower-priced trims could draw even more buyers later.
UBS expects Rivian to exit 2026 with a positive automotive gross margin. That metric could turn positive in the first quarter of 2027.
Spak also pointed to the Software & Services business. He thinks its higher margins can help fund Rivian’s plans.
He sees the upcoming Autonomy+ point-to-point service as another source of recurring revenue. A customer launch in early 2027 could be a catalyst, he said.
Cash burn remains a concern. Still, Spak noted Rivian has $13 billion in total available and targeted future capital.
He does not expect the company to raise more money before 2029. He added that Rivian “is and will likely remain a volatile stock.”
Earnings and Other Analyst Calls
The upgrade follows a Q3 report that beat expectations. Revenue climbed 38% from a year ago to $2.155 billion.
Deliveries rose 46%, and the loss per share came in better than analysts expected. Rivian also raised its full-year delivery guidance.
Jefferies upgraded the stock to Buy around the earnings release. It also set a $17 target, pointing to a roughly 30% three-month pullback.
Evercore ISI reiterated its Outperform rating with an $18 target. Wall Street’s consensus rating is still Hold, based on eight Buys, five Holds and four Sells.
The stock had been near its 52-week low of $11.38 before earnings. It remains well below its 52-week high of $22.69 and is down more than 37% this year.
Broader markets were firmer early Monday. The Nasdaq was up 0.9%, the S&P 500 gained 0.5% and the Dow added 0.4%, after all three closed lower Friday.
The TipRanks average price target of $17 implies about 40% upside from recent levels. Rivian traded at $12.55 in pre-open action.
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