Investing in stocks, Apple vs Tesla: Goldman Sachs now suggests investing in Tesla shares, also this effect of the coronavirus?
The investment strategies recommended by large investment banks change. Goldman Sachs analysts have changed perspective on two US shareholding giants: Apple and Tesla. In the report that was released by the experts of the american investment bank, the coronavirus is not mentioned as a factor that led to the review of the ratings on Tesla and Apple, but it is however clear that the disastrous consequences of the pandemic have led to a strong change of perspective on many stocks and sectors.
Those who are used to investing in American equities must consider the rating and target price update that Goldman Sachs has decided on Tesla and Apple.
Apple shares or Tesla shares? Goldman Sachs’ judgment
Is it better to invest in shares Tesla or Apple? To answer this question it is always good to take into consideration what the analysts’ opinions are. A change in rating (both in the case of upgrades and downgrades) is always capable of impacting the price trend of the securities involved.
Apple shares to sell for Goldman Sachs
According to analysts, Apple shares are to be sold: rating sell, therefore, on Apple. Obviously the judgment reflects a series of elements that are indisputable to the coronavirus crisis. The experts, in fact, see a third quarter in sharp decline for iPhone shipments.
However, the ongoing recession should not cause Apple to lose users: “Let’s assume that already acquired users will keep the devices in their possession for longer and that they will choose cheaper Apple products when buying a new device” GS analysts said. As for the new models, Goldman Sachs does not expect Apple to present new models of devices at least until November.
The fact that Apple shares are for sale does not mean, however, that you need to stay away from the title: you can take advantage of the drop in Apple prices with short trading and earn with a fall in the prices of the title.
Tesla shares to buy for Goldman Sachs
Goldman Sachs’ opinion on Tesla shares is decidedly more positive. On Musk’s company, the experts have a buy rating and a target price of $ 864, a value not far from the $ 900 that had been achieved by the company before the outbreak of the coronavirus emergency.
For experts, Tesla continues to have a strong advantage over other automotive manufacturers in the electrical sector and therefore maintains an excellent market position. In Goldman Sachs’ note you can read what Tesla’s strength is his strong brand. However, vertical integration and the “first come” advantage are also important strengths, especially considering that the sector in which Tesla operates is characterized by generally long development cycles.
In addition, Tesla is and will be less affected by the difficulties of the more traditional automotive sector: the coronavirus crisis has reduced car sales by 70%, in addition Elon Musk’s company has no problems due to traffic restrictions for environmental reasons. So it can also be said that Tesla shares are an ESG investment with ample opportunity for growth.
There is no need to buy Tesla shares, you can trade by opening long positions.