Needham reiterated a Buy rating and $14 price target on Rivian Automotive Inc. (NASDAQ:RIVN), pointing to strong market potential for the company's upcoming R2 mid-size SUV.

The brokerage said its diligence and consumer surveys in markets with low EV penetration indicated favorable awareness and purchase intent for Rivian's brand. The R2, priced around $50,000, was expected to significantly broaden the company's total addressable market beyond its higher-priced R1 lineup.

Needham noted that consensus estimates for fiscal 2026 R2 deliveries were modest relative to the potential market opportunity. The analysts added that Rivian was well positioned to capture share in the mid-size SUV category, supported by its brand recognition and relatively limited negative perception.

The firm's $14 price target reflected a multiple of 15x EV to its fiscal 2028 adjusted EBITDA estimate, discounted back.