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PCAR

Paccar

$68.53

1.63 (2.44%)

, TSLA

Tesla

$317.55

0.74 (0.23%)

06:34
11/29/17
11/29
06:34
11/29/17
06:34

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.

PCAR

Paccar

$68.53

1.63 (2.44%)

TSLA

Tesla

$317.55

0.74 (0.23%)

  • 16

    Jan

PCAR Paccar
$68.53

1.63 (2.44%)

11/06/17
ARGS
11/06/17
UPGRADE
Target $82
ARGS
Buy
Paccar upgraded to Buy from Hold at Argus
11/06/17
ARGS
11/06/17
UPGRADE
Target $82
ARGS
Buy
Paccar upgraded to Buy at Argus on accelerating sales growth
As previously noted, Argus analyst John Eade upgraded Paccar to Buy from Hold with an $82 price target. Eade says that the company's market share gains reflect Paccar being the choice of many trucking operators amid an industry-wide driver shortage. The analyst also says that the orders for heavy-duty trucks in North America appear to be at an inflection point, having declined since 2011, while the European market is also showing strength.
11/21/17
JPMS
11/21/17
NO CHANGE
JPMS
Class 8 retail truck sales rose 28% in October, says JPMorgan
JPMorgan analyst Ann Duignan notes that according to ACT Research, Class 8 retail truck sales were 23,684 units in October, up 28% year-over-year but down 4% year-to-date, while net orders were 36,033 units, up 159% year-over-year and up 55% year-to-date. Truck demand has the largest incremental impact on Navistar (NAV), Paccar (PCAR), Cummins (CMI), Allison Transmission (ALSN) and Eaton (ETN), Duignan tells investors in a research note. She points out that the truck and truck components group has outperformed year-to-date, but underperformed more recently on Tesla's (TSLA) Class 8 electric semi announcement.
11/29/17
SBSH
11/29/17
DOWNGRADE
Target $75
SBSH
Neutral
Paccar downgraded to Neutral from Buy at Citi
Citi analyst Timothy Thein downgraded Paccar to Neutral saying he no longer sees catalysts in place to warrant a Buy rating. The analyst expects multiple compression in 2018 as North America truck build rates eclipse "trend" levels. He cut his price target for the shares to $75 from $81.
TSLA Tesla
$317.55

0.74 (0.23%)

11/17/17
OPCO
11/17/17
NO CHANGE
OPCO
Perform
Opco sees 'relatively slow' adoption of Tesla's semi truck
The characteristics of Tesla's semi truck unveiled last night are "impressive" with a stated 500 mile range and an ability to climb 5% grades at 65 miles per hour versus a typical diesel at 45 mph, Oppenheimer analyst Colin Rusch tells investors in a research note. He notes that the battery size is unclear, however. The analyst also expects the Roadster announced last night to have an "enthusiastic response and be a source of cash via reservations." Nonetheless, truckers are "notoriously conservative," which means adoption of Tesla's semi will likely be "relatively slow," Rusch contends. He keeps a Perform rating on the shares.
11/20/17
JPMS
11/20/17
NO CHANGE
Target $185
JPMS
Underweight
JPMorgan still cautious on Tesla's ability to ramp Model 3 volume
Diving the Model 3 makes "quite an impression - it is a veritable display of technology on wheels with a high coolness factor," JPMorgan analyst Ryan Brinkman tells investors in a research note titled "Model 3 Test Drive Confirms No Trouble Lining Up Buyers, But We Remain Cautious on Ability to Profitably Ramp Volume." The analyst believes progress, or lack thereof, in profitably ramping Model 3 volume will be the key driver of Tesla shares into 2018, not expectations for future products such as the semi-truck or Roadster. He still sees challenges in the company hitting production targets and attaining a 25% gross margin. Brinkman keeps an Underweight rating on Tesla shares with a $185 price target.
11/21/17
MSCO
11/21/17
NO CHANGE
Target $379
MSCO
Equal Weight
Tesla could rise above $400 per share in next few months, says Morgan Stanley
Morgan Stanley analyst Adam Jonas said he expects Tesla shares to be extremely volatile in 2018. He assumes that Tesla's battery module production bottlenecks may be resolved in weeks, which could result in the stock price rising to $400 or more over the next few months, he tells investors. However, following a "hypothetical 1H18 pop," he could see longer-term risks in the story and more serious headwinds to come to the forefront of investors attention, Jonas adds. The analyst maintains an Equal Weight rating and $379 price target on Tesla shares, which closed yesterday at $308.74.

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