Stifel raised its price target for Rivian Automotive to $20 from $17 following the company's fourth-quarter results and 2026 guidance. The firm maintained its Buy rating after Rivian reported a narrower-than-expected automotive gross loss of $59 million and strong performance from its Software and Services unit, which generated $179 million in gross profit.

Stifel highlighted a roughly $4,000 sequential decline in cost of goods sold per vehicle, driven by increased commercial van production and operational efficiencies. The brokerage expects further cost absorption as R2 production ramps up, though early volumes in the second and third quarters could pressure margins before improvement later in the year. Positive pre-production reviews of the R2 model have bolstered confidence in Rivian's path to profitability.

The firm significantly increased its 2026 delivery forecast to 62,000-67,000 vehicles from its previous estimate of about 52,000, citing a stronger second-half R2 ramp. Rivian's management guided to year-over-year gross profit growth and projected Software and Services revenue to rise 60% with margins in the mid-30% range. The company also expects to receive an additional $2 billion from its joint venture with Volkswagen, including $1 billion subject to winter testing.