The 2013 All-America Research Team: Autos & Auto Parts, No. 3: Adam Jonas

Rising from runner-up to No. 3 is Adam Jonas of Morgan Stanley.

Adam Jonas
Morgan Stanley

First-place appearances: 0

Total appearances: 2

Analyst debut: 2012

Rising from runner-up to No. 3 is Adam Jonas of Morgan Stanley. The analyst follows 27 names and is generally wary of domestic automakers, on valuation concerns. He instead favors parts suppliers that exhibit “positive long-term secular growth trends,” Jonas says, such as the U.K.’s Delphi Automotive and TRW Automotive Holdings Corp. of Livonia, Michigan. Yet his favorable coverage of Palo Alto, California–based Tesla Motors stands out. He upgraded the electric vehicle innovator from underweight to overweight in September 2012, as a bargain at $30.39. In May, when Tesla undertook a $1.1 billion round of capital raising in part to finish paying back a $465 million loan from the U.S. Department of Energy — nine years early — Jonas named it his top pick. The shares were already up an astounding 203.6 percent since September, to $92.25, and ahead of the sector by 173.2 percentage points. By the end of August, they had bolted 83.2 percent further, to $169, while the sector climbed 9.9 percent. — Ben Mattlin

Related