TD Cowen Boosts Rivian Price Target to $20 Ahead of $45K R2 Launch
TD Cowen upgraded Rivian to buy and set a $20 price target after forecasting R2 demand of 212,000–335,000 units. Rivian will launch the midsize R2 SUV in H1 2026 at a $45,000 price to boost volumes and reduce per-unit fixed costs at its Illinois plant.
1. Analyst Upgrade Details
TD Cowen upgraded Rivian to buy, set a $20 price target by narrowing its projected 2027 EBITDA loss and forecasting full-scale US demand of 212,000–335,000 units for the upcoming R2 model.
2. R2 Launch Plan
Rivian plans to unveil its midsize R2 SUV in the first half of 2026 with a $45,000 starting price, targeting more cost-conscious buyers than its premium R1 series.
3. Production and Cost Efficiency
Higher production volumes at Rivian’s Normal, Illinois plant are expected to deliver economies of scale, driving down fixed costs per unit across the vehicle lineup.
4. Profitability Implications
The company anticipates that strong R2 demand and improved manufacturing efficiency will accelerate its path to profitability and bolster future margin expansion.