Tesla’s Price Target Raised by J.P Morgan After Deliveries Data

Tesla (TSLA) rose Monday after J.P. Morgan analyst Ryan Brinkman, a long-time bear, raised his share-price target on the electric car company after it reported strong third-quarter deliveries last week.

Brinkman’s not exactly a raging bull. He lifted the share-price target to only $75 from $65. That compares to a recent quote of $423.17, up 1.95% from Friday and up an astronomical 406% year to date through Friday.

Brinkman also maintained his underweight rating.

But as for the positives, “we are raising our estimates to account for 3Q deliveries which exceeded our expectations and that of consensus, but which appear to have fallen short of likely elevated investor expectations,” the analyst said,

Tesla said last Thursday that deliveries for the three months ended in September hit a record 139,300.

“We are introducing 2022 estimates, looking for EPS of $3.35 vs. $2.50 in 2021 and $1.85 in 2020,” Brinkman said. He boosted his share-price target “on account of our new, higher out-year estimates.”

Not all analysts are jacked up on Tesla. The company’s delivery total was “well below our high-end estimate of 150.6K,” wrote Needham analyst Rajvindra Gill. He has an underperform rating and no price target.

“We are reducing our estimates to reflect the lower-than-expected deliveries and lower ASP [average selling price,] given the higher mix of Model 3,” Gill wrote.

“Since 2Q earnings on July 23rd, TSLA’s market cap has increased from $295 billion to $415 billion (up 41%, vs. up 3% for the S&P 500), yet the company did not confirm it will achieve its 500K annual target.”