UBS raised Rivian Automotive (Rivian) to Buy from Neutral and set a $17 price target Monday, citing a path to positive automotive gross margins by year-end as R2 output increases.
Rivian’s stock was down about 20% in the three months leading up to the upgrade. UBS analyst Joseph Spak said early interest in the R2 appeared solid.
Spak said Rivian’s software and services operation was advancing. UBS views the unit’s high margins as a possible source of funds for further growth. Jefferies also upgraded Rivian after its third-quarter results the previous week.
