This article first appeared on GuruFocus.
Rivian (NASDAQ: RIVN ) shares rose about 6% on Thursday after Baird raised his price target to $25 from $14, citing the launch of the R2 and the company’s autonomous driving roadmap.
The new target represents a roughly 42% upside from Wednesday’s closing price of about $17.63, and comes as Baird upgraded Rivian to outperform as it assesses its near-term catalysts.
Analyst Ben Kallo pointed to the launch of the R2 in the first half of 2026 and recent autonomous driving demonstrations as key drivers of demand and sentiment.
Rivian says production of the R2 will begin next year at its Normal, Illinois, plant, with the first dual-motor model being the Launch Edition, and it plans to deliver a salable model by mid-year.
The R2 will sit below the R1 series, which includes the pricier R1S and R1T models, with the entry-level R2 targeting a price tag of nearly $45,000.
Baird also noted that collecting software and fleet data from existing vehicles can serve as a multiplier for autonomous driving development.
Rivian recently integrated LiDAR into the R2 design and outlined a neural network approach to pairing cameras with sensors for actual training.