| 2017-11-29 06:34:10|
PCAR, TSLA 06:34 11/29 11/29/17
Paccar weakness since Tesla Semi reveal overdone, says JPMorgan
Paccar (PCAR) shares have underperformed the S&P Machinery Index by 4.7% since the reveal of Tesla's (TSLA) Semi truck, JPMorgan analyst Ann Duignan tells investors in a research note titled "Why Electric Vehicles Could Be An Opportunity." The analyst views the stock reaction as overdone, saying the likelihood of "significant disruption in the near to mid-term is limited, at most." If Tesla is to succeed in transforming the trucking industry to electric, it will likely need to partner with a company like Paccar, Duignan writes. She does not view Tesla's Semi as a significant threat and feels, rather, that it could be an "upside catalyst." The analyst reiterates an Overweight rating on Paccar with an $83 price target. Citi this morning downgraded the shares.