Rivian Gets New Street High Price Target after Baird Calls 2026 ‘the Year of the R2’

Rivian’s (RIVN) upcoming R2 launch, set for mid-2026, could be a major breakthrough for the electric vehicle maker. The R2 is expected to strengthen Rivian’s brand, increase demand for its products, and potentially lift its stock price, which has dropped significantly since its November 2021 IPO. Therefore, four-star analyst Ben Kallo from Baird called 2026 “the year of the R2,” and said that with worries about EV tax credits now behind us, investors may be more open to revisiting Rivian as it enters this new product cycle.

Because of this, Kallo upgraded Rivian from a Hold to a Buy rating with a “Speculative Risk” tag. He also raised his price target by 78% to $25 per share, which is now the highest target on Wall Street. Interestingly, Kallo expects Rivian to form more commercial fleet partnerships and believes that its $6.6 billion in available Department of Energy loan support gives it enough funding to expand beyond its current Georgia plant.

As a result, Rivian shares are surging thanks to Baird’s upgrade and the launch of new features for its R1 SUVs. One major update is the “Universal Hands Free” software, which now allows hands-free driving on over 3.5 million miles of roads with visible lane lines, a big jump from the earlier 135,000 miles. Other new features include a customizable “drive style” setting (mild, medium, or spicy) that adjusts steering during lane changes, and a digital key that can be stored on smartphones.

Is RIVN Stock a Buy or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, eight Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $15.78 per share implies 19% downside risk.

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