Guggenheim starts Rivian with a Buy ahead of financial inflection

As previously reported, Guggenheim analyst Ronald Jewsikow initiated coverage of Rivian Automotive with a Buy rating and $18 price target. The firm sees a “credible path” to breakeven gross margin in Q4 and believes an inflection in financials should support the stock in the near term. The firm, which also believes that the market has routinely underestimated operating leverage for electric vehicle OEMs in the past, advises that investors should be buying Rivian ahead of what the firm expects will be a positive inflection in EBITDA in mid-2026. The firm, which calls the R2/R3 platform the “largest source of value” in its sum-of-the-parts analysis, believes a high-teens gross margin is the base case for the platform and concludes an investment in the stock is “about underwriting the R2/R3, something we believe investors should be enthusiastic about.”