For the second day in a row, shares of Rivian Automotive (NASDAQ: RIVN) stock climbed higher Friday -- up 10.5% through 2:20 p.m. ET -- and for the same reason as yesterday:
A Wall Street analyst is raising its price target on Rivian.
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Image source: Rivian Automotive.
Why Wall Street loves Rivian
Yesterday, Baird analyst Ben Kallo raised his price target on Rivian stock from $14 to $25. Kallo cited Rivian's upcoming introduction of the R2 electric SUV into its lineup as the primary motivation for raising his target price.
Today, Wedbush seconded that emotion.
Rivian is ready to launch the R2 in H1 2026, and Wedbush analyst Daniel Ives agrees that prospect could lift Rivian stock to $25. More than just the new car, Ives argues Rivian's development of a new artificial intelligence chip and its push to turn its vehicles autonomous give the company new ways to make money. At the same time, Rivian is working to cut costs and grow its profit margin.
Is Rivian stock a buy?
Will this be enough to save Rivian, though? I'm not yet convinced.
On the one hand, Rivian did a great job of growing sales last quarter. On the other hand, it did so in the middle of a vast, last-minute rush by consumers to buy EVs before the federal EV tax credit disappeared. Not only will this feat be hard to repeat. The late-September rush of EV sales probably pulled a lot of demand forward from Q4, and even from 2026, into Q3 2025.
All eyes must now turn to sales growth. If Rivian maintains momentum in 2026, the stock could well be the "buy" that Wall Street says it is. But if sales stall... then Rivian stock is a sell.
Should you buy stock in Rivian Automotive right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.