Rivian Automotive (NASDAQ: RIVN) stock jumped 4% in intraday trading Tuesday after it received an upgrade from UBS.
UBS analysts have revised their stance on Rivian (RIVN) stock, moving it from Sell to Neutral. They believe the current valuation levels offer a more balanced risk-reward profile.
Analysts have observed that the current stock price more accurately reflects their concerns for the midterm. They suggest that the stock is now pricing in sales of approximately $4.5 billion in 2025, which is closer to their estimate of $5.1 billion, even though the consensus still predicts $7.5 billion.
The analysts added,
“With climbing short interest (now ~18.7% of float), positioning is also a higher risk, especially if a positive data point/catalyst emerges. That said, we’d expect the stock to remain volatile.”
UBS identified potential short-term upside catalysts, such as positive developments regarding R2 orders, which could signal Rivian’s future growth potential, expected to materialize around 2026/27.
On the other hand, near-term downside risks may include price cuts for the R1 model or weaker demand for the same, although the analysts believe that these factors are already factored into the current stock price. Additionally, headwinds stemming from rising interest rates could pose further risks to the electric vehicle (EV) stock.
Rivian (NASDAQ: RIVN) Stock Movement
At the time of publication, RIVN stock has risen 3.69% compared to the previous trading session, trading at $8.71. The traders have exchanged hands with 51,380,906 (51.38 million) shares versus the average daily trading volume of 45.84 million.
