Add as a preferred source on GoogleUBS Upgrades Rivian to Buy With $17 Price Target After Share Drop
The bank expects automotive gross margins to turn positive by year-end as R2 production grows. Its target is 40% above Friday’s close.
UBS shifted its view of Rivian Automotive (Rivian) to buy from neutral Monday and set a $17 price target after a roughly 20% share decline over three months.
The target is 40% above Friday’s closing price. UBS analyst Joseph Spak said, “Initial R2 demand looks solid.” He expects automotive gross margins to improve as production of the R2 model ramps up.
UBS expects Rivian’s automotive gross margins to turn positive by year-end. Spak also described the company’s software and services business as progressing well; UBS sees its high margins as a potential source of funding for further growth.
The move follows Jefferies’ upgrade of Rivian after its third-quarter results last week.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.