Deutsche Bank Boosts Rivian Price Target to $23 as R2 Launch Stays On Track
Deutsche Bank upgraded Rivian to Buy and raised its price target to $23 from $16, citing on-track R2 launch in Q2 and a $2 billion Volkswagen investment. Management projects 52% year-over-year FY26 delivery growth after posting its first positive gross profit driven by a 109% software and services revenue surge.
1. Analyst Upgrade Raises Price Target
On February 13, Deutsche Bank upgraded Rivian to Buy from Hold, raising its price target to $23 from $16, citing reduced near-term risk, improved vehicle cost structure and an on-track R2 launch scheduled for Q2.
2. Positive Profit and Delivery Growth
Rivian posted its first full year of positive gross profit, driven by a 109% surge in software and services revenue, while management projects 52% year-over-year vehicle delivery growth for FY26, marking a major inflection after two years of declines.
3. Funding Strengthens Balance Sheet
The automaker’s balance sheet is bolstered by a $2 billion Volkswagen investment and a DOE loan, providing a capital safety net for the Georgia expansion and supporting ongoing vertical integration efforts in autonomy and chip design.