Investment firm Needham has reaffirmed its Buy rating on Rivian Automotive Inc. (NASDAQ: RIVN), maintaining a $14 price target for the electric vehicle maker. This bullish stance comes as the company approaches the highly anticipated launch of its mid-size R2 SUV, a vehicle analysts believe will be a pivotal growth driver.

According to the firm, proprietary consumer research in regions with traditionally lower EV adoption rates revealed unexpectedly strong brand awareness and purchase intent for Rivian. The upcoming R2 model, with an expected starting price near $50,000, is positioned to dramatically expand Rivian’s total addressable market, making its products accessible to a broader audience beyond its premium R1T truck and R1S SUV.

Needham’s analysis suggests that the current consensus delivery estimates for the R2 in fiscal year 2026 may be conservative, significantly undervaluing the model’s potential market opportunity. The firm contends that Rivian’s powerful brand identity and a lack of major negative consumer perception provide a solid foundation to capture meaningful market share in the competitive mid-size SUV segment. The $14 price target is derived from a discounted cash flow model based on a 15x enterprise value to adjusted EBITDA multiple for fiscal year 2028.