Tesla: shares resume rally on broker comments
(CercleFinance.com) - After catching their breath on Friday, Tesla shares resumed their rally on Monday, rising more than 6% one hour after the bell, following positive broker comments on the stock.
In a note this morning, Wedbush Securities said that it has raised its target price for the stock from 500 dollars to 560 dollars, also setting a new "bull case" target of 1,000 dollars, from 800 dollars previously.
The broker justified its optimism by steeper demand for the adoption of electric vehicles over the next 18 to 24 months, with China and Europe being the main growth drivers.
"With the sustained path to profitability and S&P 500 index inclusion achieved, the Tesla bull story is now all about a stepped up EV demand trajectory into 2021," Wedbush wrote in the note.
Overall, the analysts expect a major inflection in demand globally, saying that electric vehicles could ramp from about 3% of total auto sales today to 10% by 2025.
Wedbush, however, maintains a "neutral" rating on Tesla shares.
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