4Q Earnings Preview: Deutsche Bank Expects a Positive Update from Tesla (TSLA), Raises Price Target on General Motors (GM) and Ford (F)

January 13, 2022 9:23 AM EST
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Deutsche Bank analyst Emannual Rosner has weighed in to preview the upcoming 4Q earnings season for US carmakers.

The analyst expects to see “eventful” earnings season and sees many car suppliers presenting lower-than-expected guidance.

“This will reflect more cautious management outlooks around the shape of 2022 volume recovery, their growth above market and especially incremental margins, amid ongoing supply constraints, normalizing vehicle mix, and cost headwinds from commodities, freight, labor and energy. We update our earnings and price targets across our coverage, and see potential for notable 2022 guidance misses from ALV, APTV and VC, followed by AXL, LEA and DAN, and potentially even a miss+cut from ADNT,” Rosner said in a client note.

On Tesla (NASDAQ: TSLA), Rosner expects “a positive update” when it comes to growth and margin.

The EV giant is likely to have an important 2022 “with the ramp up of 2 new factories, potential near-doubling of volumes, FSD deployment, and initial production of its own VC.OQbattery cells and Cybertruck.”

Rosner raised price targets on Ford (NYSE: F) and General Motors (NYSE: GM) to $24.00 and $71.00, up from $18.00 and $67.00, respectively.

“The 2022 setup and catalysts for F remain positive as well, but we see better mid-term upside in GM,” the analyst concluded.

By Senad Karaahmetovic | senad@streetinsider.com

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