UBS upgraded its rating on Rivian Automotive from neutral to buy, setting a $17 price target that implies 40% upside from Friday’s close. The bank believes the recent sell-off presents a buying opportunity ahead of an inflection in the R2 production ramp and gross-margin improvement. Analyst Joseph Spak highlighted solid initial R2 demand and expects Rivian to end the year with positive automotive gross margins. Shares have fallen about 20% over the past three months amid a slowdown in global electric vehicle demand, while the company’s high-margin software and services business could help fund further growth. UBS’s call matches the analyst consensus: 16 of the 28 analysts covering Rivian rate the stock a buy or strong buy, and Jefferies also upgraded the automaker to buy the previous week.
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