UBS Upgrades Tesla (TSLA) to Buy, 'Tesla's future is brighter than ever'

UBS analyst Patrick Hummel upgraded Tesla (NASDAQ: TSLA) from Neutral to Buy with a price target of $1,100.00.

The analyst comments "We upgrade TSLA to Buy (from Neutral) with an unchanged $1,100 PT. TSLA is down ~35% ytd in line with other tech stocks, but we believe the operational outlook is stronger than ever before thanks to: (1) record-high order backlog & two new gigafactories ramping up; (2) margin momentum: after the Q2 dip, auto gross margin should structurally exceed 30%, driven by pricing and product & process innovation; (3) a structural competitive edge in key supply chains, resulting in superior growth and profitability. While we cut 2022E EPS by -12% to account for the Shanghai lockdown (still reaching ~50% growth in deliveries y/y though), we raise EPS for the next 3 years by up to 40% resulting in $28 EPS (diluted) 2025E, to be achieved mostly with already known products & production facilities."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $725.60 yesterday.

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