RBC Hikes Price Targets on Tesla (TSLA) Ahead of Earnings on Expected Beat, Rivian (RIVN) Seen as a Favorite EV/Growth Play for 2022

January 14, 2022 2:55 PM EST
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RBC analyst Joseph Spak reflected on the US Autos sector ahead of the 4Q earnings season.

The analyst expects earnings to be around the midpoint of guidance, in general. He argues that the focus will be on “the higher logistic costs, commodities and plant inefficiencies from still choppy schedules weighed on margins.”

When it comes to OEMs, Spak sees F/GM reporting “inline to a beat” while Tesla (NASDAQ: TSLA) is likely to beat the current consensus.

“We'd expect TSLA to stick to high-level around 50% growth over the coming years commentary, but 2022 delivery numbers could move higher and the company is expected to update the Street on product roadmap,” the analyst said in a client note.

As far as General Motors (NYSE: GM) vs Ford (NYSE: F) debate, the analyst believes guidance will bracket consensus.

“We are above consensus (and more so on F vs. GM) but prefer GM as we believe F stock will consolidate post recent performance.”

Elsewhere, Rivian (NASDAQ: RIVN) is RBC's top EV/growth play at current levels as Spak believes “the company can continue to ramp in 2022, will sell all the vehicles they can make as the product hits at sweet spot of an inflecting US market.”

Tesla stock price trades at $1,035.59.

By Senad Karaahmetovic | senad@streetinsider.com

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