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BNP Paribas Exane Raises Rivian Target to $20, Cites Profit Gains and Strong Positioning

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BNP Paribas Exane raised its price target on Rivian Automotive (NASDAQ:RIVN) to $20 from $18 while reiterating its Outperform rating, highlighting improved profitability, strategic flexibility, and strong financial backing.

Analysts pointed to continued progress in Rivian’s gross margin improvement and praised the company’s ability to adapt to a complex tariff landscape. The firm also emphasized Rivian’s robust liquidity position, underpinned by its partnership with Volkswagen and access to a $6.6 billion Department of Energy loan, which is expected to fully fund its Georgia manufacturing facility.

Rivian’s disciplined pricing on its R1 vehicles—prioritizing margins over volume—was seen as a positive signal ahead of the highly anticipated R2 launch in Q1 2026. BNP views the R2 as a pivotal moment for Rivian, positioning it as a natural alternative to Tesla amid rising political scrutiny of Elon Musk.

With a clearer path toward sustainable free cash flow, the firm is gaining confidence in Rivian’s long-term outlook and operational resilience.

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