1 Wall Street analysts have upgraded Rivian stock, with possible catalysts ahead. Is it a buy?

According to one Wall Street analyst.Rivian Automotive (NASDAQ Resonance Symbol: RIVN)The stock price has fallen enough.UBS(Reuters) - Analyst Joseph Spak upgraded the electric-vehicle (EV) maker's stock rating on Tuesday, hinting that it could be upgraded again in the future.

Spark resonates both the short-term view and the specific catalysts that could drive Rivian stock higher over the long term. Sparkon upgraded his rating to Neutral from Sell on Tuesday after Rivian shares fell more than 50% in the past three months. He kept his target price at $9, but noted that a new catalyst could emerge.

One of the catalysts that may be driving the electric car maker's stock price higher

In the short term, Sparkon noted that after the recent decline in Rivian's share price, "we think the near-term risk/reward profile is more balanced at current levels". He added that risks currently reflected in the share price include a general slowdown in electric vehicle sales growth. However, the downside has also reached more than 18% of Rivian's existing stock.

Any near-term catalyst could trigger a short squeeze that could push the stock higher, and there's a potential catalyst right now. And there's a potential catalyst right now, as Rivian recently unveiled its next electric vehicle, the R2 SUV, and the analyst believes the initial update to the R2's pre-calculus will support the stock's long-term potential.

R2 won't go public until 2026, but if any of the latest news leads investors to expect revenue growth in the coming years, then the stock could move higher. With Rivian's share price near record lows, pessimism around slowing demand and sales of electric vehicles may have been factored into the stock price.

Investors shouldn't just look at short-term trends or short-covering to see if it will push up the stock price. But if the R2 platform, or even the future R3 crossover SUV, is favored by EV buyers, Rivian's stock could have bottomed out. Of course, the risk is still there, but investors should consider buying Rivian stock now if they believe there will be strong demand for low-cost vehicles in the electric car segment.

Should you invest $1,000 in Rivian Automotive now?

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Howard Smith has a position in Rivian Automotive. the Motley Fool does not own any of the above stocks. the Motley Fool has a disclosure policy.

1 Wall Street analysts have upgraded Rivian stock, with catalysts likely to emerge in the future. Should I Buy? This post was originally published by The Motley Fool