Rivian’s R2 Launch Spurs $23 Target, Point-to-Point and LiDAR Catalysts
RIVN•Needham reiterated its Buy rating and $23 price target on Rivian’s newly delivered R2 SUV, implying 56% upside and highlighting bill-of-materials cost reductions observed during its Investor Drive event. The firm identified point-to-point navigation, a LiDAR-enabled hands-free variant and lower-priced R2 trims as key upcoming catalysts.
1. Needham’s Reiterated Buy Rating and $23 Target
Needham reiterated its Buy rating and $23 price target on Rivian, implying a 56% upside from current levels following its Investor Drive event.
2. R2 Investor Drive and Cost Visibility
The brokerage said its test drive of the newly delivered R2 midsize SUV confirmed a “TAM expanding” product and highlighted visibility into bill-of-materials cost reductions as evidence of improving production economics.
3. Upcoming Navigation and Autonomy Catalysts
Key catalysts over the next year include the rollout of point-to-point navigation, a LiDAR-enabled hands-free driving variant and the introduction of lower-priced R2 trims to broaden market appeal.
4. Software Delays and Stock Movements
Rivian’s software chief confirmed that features such as Rivian Assistant, Pet Mode and Climate Hold were intentionally delayed for quality, while shares rose 1% overnight and remain down over 6% from the previous session.
