Bank of America has raised its price target on Tesla (NASDAQ: TSLA) to $1,300 per share from $1,100. Meanwhile, the firm is cutting its price targets for General Motors and Rivian.

Bank of America analyst John Murphy revised the company's auto industry report to reflect the latest updates and trends. “Despite the cut to our volume forecasts (more significant in 2022E, but also modest for 2023-2025E), we continue to believe that the near-term volume pressure is setting up for a more robust capital goods replacement cycle over the mid/Iong-term. Additionally, our assessment of stock cycle timing (stocks peak/trough 12-18 months before volume peak/trough) remains favorable. More specifically, our expected peak around 2025 should be set up for a broad-based constructive trade on the group to persist into 2022–2023, although we expect stocks may remain volatile over the next few months,” Murphy explained in a client note.

The analyst raised his price target for Tesla to $1,300 per share from $1,100. In addition, he raised Ford's price target to $32 from $30 to reflect updated estimates. In parallel, Murphy cut General Motors' price targets to $95 from $100, Fisker's to $18 from $23, and Rivian's to $100 from $140.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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