Tesla (TSLA) – Get the report The shares were confirmed as underweight with a higher price target at JP Morgan following the delivery report of the electric vehicle titan for the second quarter.
“We’re increasing ours [earnings] Estimates assume that worldwide shipments in the second quarter will be 201,250, ”wrote JP Morgan analyst Ryan Brinkman.
The deliveries corresponded “approximately to the consensus of 200,879, but slightly more than the 196,690 we were looking for”.
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This prompted Brinkman to raise his earnings per share estimate for the second quarter from 86 cents to 91 cents. That compares to the Bloomberg analyst consensus of 94 cents.
On the last review, Tesla stock was trading 3.5% at $ 655.18.
“Our full year shipments forecast improves from 815,000 to 820,000 compared to our model compared to the 5,000 beats seen in the second quarter,” said Brinkman.
That, in turn, caused his team to revise their estimate of earnings per share for 2021 from $ 4.10 to $ 4.20, compared to the analyst consensus of $ 4.43.
All of these numbers led to an increase in Brinkman’s price target.
“Our underweight takes into account notable investment advantages, including a highly differentiated business model, an attractive product portfolio and cutting-edge technology,” he said.
But that is “more than offset by an above-average execution risk and an above-average rating that seems to be pricing in a lot”.
On other Tesla news, TheStreet.com founder Jim Cramer said the stock was a hybrid workplace last week. A hybrid workplace means that some employees work in the office and others work from home.
In the meantime, the Swiss Digital Assets AG DAAG will tokenize dozens of stocks – including Tesla, Facebook (FB) – Get the report and alphabet (GoogL) – Get the report – on the Solana network, the latest download for the blockchain, TheStreet reported last month.