‘Markets Are Underestimating R2 Demand’: Rivian Stock Surges after TD Cowen Upgrade

2026-03-10 16:29:02

Abstract generation in progress

Shares of Rivian Automotive RIVN +7.47% ▲ are surging at the time of writing after analysts at TD Cowen upgraded the stock from Hold to Buy. The upgrade comes as the firm expects to see strong demand for Rivian’s upcoming R2 midsize SUV. Indeed, according to the analysts, the new model could significantly expand Rivian’s potential market and improve the company’s growth outlook in the electric vehicle industry.

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Meanwhile, Rivian is set to officially reveal the R2 on Thursday at the SXSW event in Austin, Texas. Importantly, the vehicle is expected to be priced competitively with other popular electric SUVs. These include the Tesla TSLA +1.39% ▲ Model Y, the Hyundai (HYMLF) Ioniq 5, and the Ford F +2.34% ▲ Mustang Mach-E. In addition, TD Cowen analyst Itay Michaeli estimates that U.S. demand for the R2 could reach between 212,000 and 335,000 vehicles, which is higher than many current market forecasts.

Looking ahead, Michaeli believes that stronger demand for the R2 could also improve Rivian’s financial outlook over time. In particular, he expects the vehicle to reduce Rivian’s projected EBITDA losses by 2027 and support a higher long-term valuation multiple. Because of this, the analyst increased his price target by 18% to $20 per share, which implies about 26% upside from Monday’s closing price. With Rivian’s stock already down more than 10% this year, Michaeli believes the current share price now offers a more attractive risk-reward opportunity for investors.

Is RIVN Stock a Buy or Sell?

Overall, analysts have a Hold consensus rating on RIVN stock based on nine Buys, seven Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $17.45 per share implies 1% upside potential.

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