Rivian Automotive (RIVN) is heading for an "inflection year" in 2026 with the launch of its R2 model in H1, Wedbush said in a report Friday.

"2026 represents a "prove-me" year with its R2 fleet," Wedbush analysts, including Dan Ives, said.

The R2 fleet could provide a significant opportunity to drive demand as the product is expected to provide a low-cost SUV which has been lacking in the EV landscape, they said.

The analysts also said they expect gross margin to improve as the company looks to adjust its sourcing and pricing strategies to navigate increases in raw material costs.

Wedbush raised its price target to $25 per share from $16 while reiterating its outperform rating.

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