Rivian is a buy ahead of R2 electric vehicle launch, says TD Cowen

Rivian Automotive’s upcoming R2 model could capitalize on an electric vehicle demand rebound in the U.S., according to TD Cowen. The bank upgraded the electric vehicle manufacturer to buy from hold. Analyst Itay Michaeli also lifted his price target to $20 from $17, which points to a 26% gain from Monday’s close. Michaeli said his upgrade follows a recent deep-dive on demand trends for Rivian’s new R2 SUV model. Rivian’s R2 model, which starts at $45,000, is less expensive and smaller than the company’s R1S SUV, which offers a starting price of $80,000. While the R2 looks visually similar to the R1S, it only has five seats, or two fewer. RIVN 1Y mountain RIVN 1Y chart “We see full scale R2 demand at 212-335k units, suggesting upside to '27 consensus. With the shares down ~20% YTD, we like the risk/reward into the R2 launch,” Michaeli wrote. The analyst said the R2 launch is consistent with his thesis around a looming U.S. electric vehicle demand comeback. “Our recently introduced (March 2026) R2 demand model suggests potential full-scale demand above the current consensus, leaving us more optimistic,” he said. “With the R2 launching in H1 2026, the vehicle will have an added advantage of being an early mover on next-gen EVs with L3/L4 hardware.” Shares of Rivian Automotive have sunk 19% this year, but are up 45% over the past 12 months.