BNP Paribas Maintains Overweight on Rivian (RIVN) Stock, Lifts PT

On Monday, May 19, BNP Paribas Exane analyst James Picariello raised the price target on Rivian Automotive, Inc. (NASDAQ:RIVN) from $18 to $20 and kept an “Outperform” rating. The analyst highlighted the company’s gross profit improvement and its ability to tackle the changing tariffs environment.

Picariello praised Rivian Automotive, Inc.’s (NASDAQ:RIVN) approach with the R1 and noted that the company is not chasing after volume sales by compromising on the average selling price (ASP). According to Picariello, this strategy puts the company in a strong position for the anticipated launch of the R2 model in Q1 2026. The R2 is also expected to benefit from political support, unlike competitors like Tesla who are facing more scrutiny.

The analyst is also confident that Rivian Automotive, Inc. (NASDAQ:RIVN) has a clear path to sustainable free cash flow (FCF). Picariello noted that there is a growing likelihood that the company will be able to secure a $6.6 billion loan from the Department of Energy (DoE). This funding can play a vital role for fully supporting operations at the Georgia manufacturing plant.

Additionally, Picariello noted that Rivian Automotive, Inc.’s (NASDAQ:RIVN) financial strategy includes using liquidity from partnerships with Volkswagen and the DoE loan. These resources are expected to provide the capital needed for the company’s expansion and operations.

Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer that currently offers the R1T electric pickup truck and the R1S electric SUV. The company aims to launch its cheaper R2 SUV in the first half of 2026 and has plans to make new additions to its lineup with the R3 and R3X SUVs in 2026 and 2027.

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Disclosure: None.