Rivian (RIVN) Gains Momentum as R2 Launch Stays on Track

Rivian Automotive Inc (NASDAQ:RIVN) is one of the AI Stocks to Watch. Wall Street believes Rivian Automotive Inc (NASDAQ: RIVN) is not for the faint of the heart. On February 13, Deutsche Bank analyst Edison Yu upgraded Rivian Automotive Inc (NASDAQ: RIVN) to Buy from Hold, raising its price target to $23 from $16.

Rivian stock is not for the faint of the heart and we certainly don’t expect a straight path forward but we see early signs that the company’s prospects are inflecting.

The firm believes that company’s 2026 outlook in the near-term looks less risky. Sales expectations are reasonable, and vehicle costs continue to improve. The upcoming R2 launch also appears to be on track for the second quarter.

Rivian’s case seems to garner further support from other competitors retreating or “slow-walking” their EV transition plans and Tesla discontinuing its higher-end models. For the long term, Deutsche Bank noted that Rivian’s efforts for a vertically integrated autonomy stack, which includes chip design, may help create a moat especially if VW deepens its support.

Rivian (RIVN) Gains Momentum as R2 Launch Stays on Track

A Riivan vehicle. Photo from Rivian website

While the company is still spending a lot of cash, its finances are supported by another $2 billion investment and a DOE loan.

Moreover, while cash burn is still high, the balance sheet is supported by another $2bn from VW this year and the DOE loan, which provides a mid-term capital safety net for the Georgia expansion. Overall, we think the risk-reward is attractive and upgrade the stock from Hold to Buy, taking our price target up to $23 (vs. prior $16).

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.

While we acknowledge the potential of RIVN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIVN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.