UBS Thinks Rivian Stock Can Hit $17. Is It a Buy?
Rivian (NASDAQ:RIVN) has a potential breakthrough in its R2 SUV and UBS sees upside to $17 per share as production improves, with software revenue supporting the business. But with free cash flow deeply negative, the critical question is whether stronger vehicle margins can arriv
Rivian (RIVN -1.56%) is poised for growth, according to UBS analysts who believe the electric vehicle maker's stock could reach $17 per share. UBS sees potential in Rivian's R2 SUV and is optimistic about the company's prospects as production improves and software revenue bolsters the business. However, UBS highlights the challenge of turning this growth story into a sustainable business, as free cash flow remains deeply negative.
The key question is whether enhanced vehicle margins can materialize swiftly enough to ensure the company's long-term success.
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