TLDR
- Rivian (RIVN) stock rose 3% in pre-open trading Monday to $12.55 after UBS upgraded it to Buy.
- UBS set a $17 price target and called the 19% monthly drop a buying opportunity.
- Q3 revenue rose 38% to $2.155 billion, and the R2 is now Rivianās best-selling vehicle.
- Jefferies also upgraded to Buy at $17, while 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.
Analyst Joseph Spak set a $17 price target. He called the recent pullback a buying opportunity.
The stock had fallen about 19% over the past month. The S&P 500 slipped just 1% in that span.
Spak said early demand for the R2 SUV looks strong. He thinks cheaper trims could pull in even more buyers later.
UBS expects Rivian to exit 2026 with a positive automotive gross margin. The metric could turn positive in the first quarter of 2027.
What UBS Sees Ahead
Spak also pointed to the Software & Services business. He expects its higher margins to help fund Rivianās plans.
He sees the upcoming Autonomy+ point-to-point service as a new source of recurring revenue. A customer launch in early 2027 could be a catalyst, he said.
Cash burn is still a concern. But 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 āis and will likely remain a volatile stock.ā
Q3 Results and Other Analyst Calls
The upgrade comes days after 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 was smaller than analysts expected. Rivian also raised its full-year delivery guidance.
Jefferies upgraded the stock to Buy around the earnings release with a $17 target. Evercore ISI reiterated Outperform with an $18 target.
Wall Streetās consensus is still Hold, based on eight Buys, five Holds and four Sells. The average price target of $17 implies about 40% upside.
The stock was near its 52-week low of $11.38 before earnings. It is still well below its 52-week high of $22.69 and down more than 37% this year.
Rivian ended the quarter with over $5.5 billion in cash. Early Monday, the Nasdaq was up 0.9%, the S&P 500 gained 0.5% and the Dow added 0.4%.
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