Rivian Rated Buy with $20 Price Target Citing 212k–335k R2 Demand
TD Cowen upgraded Rivian to buy from hold, setting a $20 price target based on expected 212,000–335,000 U.S. demand for the upcoming R2 model by 2027. The firm narrowed projected 2027 EBITDA losses and raised its long-term valuation multiple after shares fell about 20% year-to-date.
1. Cowen Upgrades Rating and Sets $20 Target
TD Cowen raised its rating on Rivian from hold to buy and established a $20 price target, reflecting roughly a 26% premium to its recent closing price. The upgrade spurred a near 6% intraday rally in shares.
2. R2 Demand Projections Support Growth Outlook
Analysts project U.S. demand for the upcoming R2 model will reach between 212,000 and 335,000 units by 2027, a volume level expected to broaden Rivian’s addressable market and drive higher production volumes.
3. Improved EBITDA and Valuation Assumptions
The brokerage narrowed its projected 2027 EBITDA losses and applied an elevated long-term valuation multiple, indicating a more favorable profitability outlook as R2 production ramps up.
4. Upside Potential After YTD Decline
With shares down about 20% year-to-date, the upgrade highlights potential upside if demand trends strengthen, while broader U.S. EV sentiment may stabilize in 2027–2028 on new platforms and personal autonomous vehicles.