Argus analyst reiterates Tesla buy rating, lowers price target to $1,123 – EV

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Written by Claudio Afonso | [email protected] | LinkedIn | Twitter

Argus analyst Bill Selesky on Friday lowered the company’s price target on Tesla stock to $1,123.00 (from $1,313.00) while maintaining a buy rating. The analyst said the automaker released “stronger-than-expected” second-quarter results expecting “strong revenue and higher automotive gross margins” in the coming quarters.

Tesla announced its second-quarter 2022 results on Wednesday, reporting total revenue of $16.9 billion (up 42% year-over-year) and a profit margin of $16.9 billion. operating growth of 14.6%, indicating that it expects to achieve “an average annual growth of 50% in vehicle deliveries”, confirming previous forecasts.

Comments from Argus analysts

“We reiterate our BUY rating on Tesla Inc. (NGS: TSLA) with a revised price target of $1,123, reduced from $1,313 to reflect the recent multiple squeeze in top-tier growth stocks. We see Tesla as the undisputed leader in the electric vehicle (EV) industry despite growing competition, with its Model S, Model 3, Model X, Model Y, and upcoming Cybertruck and tractor-trailer offerings. Tesla ranked #1 in electric vehicle sales in 2019, 2020, and 2021, and boasts both cutting-edge technology and manufacturing capabilities and unmatched brand recognition,” Selesky wrote.

“The company posted stronger-than-expected Q2 results as strong shipments more than offset the impact of semiconductor shortages and other supply chain disruptions, including the shutdown of the company’s factory in Shanghai in April. We expect Tesla to post strong revenue and higher automotive gross margins over the remainder of the year, paving the way for further profit growth. We also like the company’s plan to open up its supercharger network to non-Tesla vehicles, which should be a big new revenue stream. We note that the supercharger network is the largest fast-charging network in the world, with 3,971 superchargers in operation at the end of Q2, up 34% year-on-year. »

Tesla also detailed production at each plant, adding that it had achieved “record production rates across the company.” However, the company warned of “continued manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages and logistics and other complications, which have limited our ability to consistently operate our factories at full capacity.”

Written by Claudio Afonso | [email protected] | LinkedIn | Twitter

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