Tesla’s new share price target of $ 950 on Wedbush is the highest on Wall Street, but analyst still doesn’t say buy
Tesla Inc. On Friday, another bullish endorsement from prolific analyst at Wedbush Dan Ives, who raised his target share price by 33%, but still does not recommend investors to buy the stock.
Ives said a revolutionary investor thesis on the Tesla TSLA, “Hearts and Lungs,”
It focused on China, where consumer demand rose in 2021, not just for the Tesla Model 3, but for electric cars from “popular” domestic competitors like Nio Inc. NIO,
Li Auto Inc. LI,
And Xpeng Inc. XPEV,
He said that despite the increased competition, Tesla “remains at the top of the mountain of electric vehicles.” Given global “strong” demand for electric vehicles, Ives now expects Tesla to cross the 1 million delivery threshold in 2022, and said deliveries could start approaching 5 million a year by the end of the decade.
Ives wrote in a note to clients: “While there are more than 150 automakers aggressively pursuing electric vehicle opportunity globally, at the moment in the electric vehicle market we think it is the Tesla world and everyone else pays the rent.”
It raised his “base” price target for Tesla to $ 950, which is 12.4% more than Thursday’s closing price of $ 715. His goal is now the highest of 37 analysts surveyed by FactSet, and nearly twice the average goal of $ 498.66.
Tesla shares were up 0.5% in pre-market trading. It fell 1.1% on Thursday to close 4.0% below the January 8 record close of $ 880.02.
Ives said that Joe Biden as president and the Democratic-controlled Congress should also provide a tailwind to the electric car sector. “The Senate blue is extremely optimistic and a potential ‘game changer’ for Tesla and the electric vehicle sector in general in the United States, with an environmentally-driven agenda now definitely in the cards over the next few years, ” he wrote.
Ives also raised its “bull case” price target by 25%, to $ 1,250 from $ 1,000.
Nonetheless, he reiterated his neutral assessment he had received at Tesla since April 2019. For Wedbush, the neutral rating means analysts expect total EPS to perform in line with the average overall return for the analyst’s coverage world. Ives is listed and has a Wedbush Software Analyst, other companies covered by Apple Inc. AAPL,
Uber Technologies Inc Uber,
And Zscaler Inc. ZS,
Who rated it outperforms.
Tesla stock is up 714.9% in the past twelve months through Thursday, while Apple shares are up 65.6%, Uber shares are up 62.6% and Zscaler is up 249.8%. During the same time, the S&P 500 SPX index,
It gained 15.4%.
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