UBS Upgrades Rivian to Buy, Sees 40% Upside After Sell-Off

According to CNBC, UBS upgraded Rivian Automotive to buy from neutral and set a $17 price target, implying 40% upside from Friday's close. Analyst Joseph Spak said the recent sell-off creates a buying opportunity ahead of an expected improvement in R2 production and automotive gross margins. He said initial R2 demand appears solid and UBS expects Rivian to end this year with positive automotive gross margins. Spak also said the company's high-margin software and services business is progressing and could help fund growth. Rivian shares fell about 20% over the past three months. Last week, Jefferies also upgraded the electric vehicle maker to buy from hold.