UBS: Upgraded Tesla (TSLA.O) to Buy from Neutral, maintaining a $1,100 price target.
UBS analyst Patrick Hummel upgraded Tesla to buy from neutral and maintained a $1,100 price target on the stock. Tesla's stock is down about 35% this year, but the company's outlook is “stronger than before,” Hummel told investors in a research note.
He noted that Tesla has a record backlog of orders and two new gigafactories, good margin growth, and that Tesla has a “structural competitive advantage” in key supply chains, including in semiconductors, Vertical integration in software and battery.
The analyst lowered his 2022 earnings forecast by 12% to reflect the impact of the outbreak on production, but raised his earnings forecast for the next three years by 40%, corresponding to $28 per share in 2025.
The market is falling, but institutions set the target price of tsla at an all-time high. Does this mean that institutions are misleading investors, or they have other purposes?
What do you think about this?
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