Despite the current economic downturn, one analyst is noting that Tesla’s stock may be worth picking up before the second half of the year.
Deutsche Bank added Tesla’s stock to its “short-term Catalyst Call Buy List” this week, saying the automaker could offer a lot to investors, according to a report from Market Watch.
Although Tesla’s shares have dropped over 30 percent in 2022 thus far, Deutsche Bank Analyst Emmanuel Rosner says the company’s shares may positively surprise investors with margin performance for Q2 and going into this year’s second half.
Tesla Nears 3 Million Cars Delivered, Led by Model Y https://t.co/rmgMwypf3n
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Rosner says the company’s current stock is “a compelling opportunity to accumulate the stock” in this year’s second half, adding that Tesla could deliver “meaningful” growth on margins going forward.
In a statement, Rosner said, “Even in the event 2Q margin misses, we think investors should take advantage of the stock pull-back to get involved given margin pressure faced in the quarter would be temporary and longer-term operating leverage stays intact.”
Strategist Gary Black of the Future Fund said earlier this month that he expects Tesla’s shares to rebound following Elon Musk’s near-takeover of Twitter.
Tesla began sending out invitations for its 2022 annual stockholder meeting earlier this month, set to take place on August 4.
As of writing, shares of Tesla are trading up 2.7% for the day at $739.83 per share.
