Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
ON THE SIDELINES: Wells Fargo analyst Colin Langan initiated coverage of Tesla (TSLA) with an Equal Weight rating and $590 price target. Even after recent declines, the stock is pricing in over 12M units solid in 10 years, larger than any global automaker today, Langan told investors in a research note. The analyst expects Tesla’s deliveries to continue to surprise to the upside in the near-term but has “three notable concerns” longer term. Once Model 3/Y capacity comes fully online in 2022, there may not be enough demand for the 1.7M in capacity available for these cars, Langan contends. Further, the analyst pointed out that electric vehicle battery raw materials cost has spiked over 50% and there is U.S. regulatory risk around Autopilot. Langan believes that in a worst case, Tesla could be forced to disable the system.
BUY BEYOND MEAT: Bernstein analyst Alexia Howard double upgraded Beyond Meat (BYND) to Outperform from Underperform with a $130 price target. 2022 sales expectations have come down by 35% from pre-pandemic levels but “this is a broken growth story,” Howard told investors in a research note. The analyst expects foodservice channels to rebound as consumer mobility improves post the pandemic and says this should drive decreased competition in the U.S. retail channel. Further, the opening of the Netherlands plant will improve Beyond’s cost position in Europe and enable the brand to reduce pricing in the region, while its McDonald’s (MCD) global relationship should also “buoy sales meaningfully” over the course of 2022 and beyond, she contended. To see the rest of the story Click Here.