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Tesla Inc (NASDAQ: TSLA) record quarterly shipments may not have prompted a JPMorgan analyst to abandon his bearish stance, but he still didn’t hesitate to give credit where it was due.
Tesla analyst: Analyst Ryan Brinkman maintained an underweight in Tesla stocks but raised the price target from $ 180 to $ 215.
Tesla’s thesis: Tesla’s better third-quarter deliveries set it apart from other automakers, which have struggled to secure sufficient semiconductor supplies, analyst Brinkman said.
This suggests strong company-specific execution in this area as well as strong underlying demand, the analyst said.
JPMorgan has raised its estimates for the third quarter and full year to account for stronger than expected global deliveries in the third quarter.
Related Link: Why Tesla’s Q3 Numbers Are ‘Eye-Catching’ And Hard To Pitch
The new price target, Brinkman said, continued to imply a significant drop from current levels, but is warranted. He considers Tesla to be the second carmaker behind Toyota Motor Corp. (NYSE: TM) and before Volkswagen AG (OTC: VWAGY), he added.
“Tesla’s fundamentals, including unit volume outlook, continue to improve, although its current valuation, in our view, continues to demand even more,” JPMorgan said. The unit volume estimate of 854,000 for Tesla in 2021 is the 18th largest. Toyota, with a market capitalization of $ 290 billion compared to Tesla’s $ 776 billion, is expected to sell 9,864,000 units, he added.
General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F), with market caps of just $ 77 billion and $ 56 billion, respectively, are expected to produce 4,161,000 and 3,551,000 vehicles in 2021, the company said.
Contrary to JPMorgan’s advice, BofA Securities analyst John Murphy said that as long as the company can continue to fund disproportionate growth with an expansion of capital capacity almost at no cost, its high stock price will be justified.
Murphy has a neutral rating and a target price of $ 800 for Tesla shares.
Tesla Price Action: At the last check on Monday afternoon, Tesla shares were up 1.05% to $ 783.37.
Related Link: Electric Vehicle Week Review: Tesla Launches Wider FSD Beta Rollout, Chinese Trio Delivers, Ford Doubles Electric Vehicle Investments, Lordstown’s Cautious Strategy
Photo by Austin Ramsey on Unsplash
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