Tesla: New Street Research maintains target price
(CercleFinance.com) - New Street Research maintains a 530 dollar target price for the Tesla stock, after the maker of luxury electric cars unveiled its Q2 results last night.
According to analyst Pierre Ferragu, the California-based company brought up "pretty strong elements" on concerns recently expressed by investors, such as: (1) cash burn, (2) profitability and (3) sustainability of demand and competitiveness.
"Last night was epic," New Street Research wrote in a note to clients.
"We have the conviction Tesla won't burn cash anymore, will now be profitable, and meet unprecedented demand," the equity research house said.
New Street cited "exciting times" for Tesla and the auto industry as a whole.
"In these circumstances, we see the stock moving to the next level, and our 530-dollar price target suddenly appears sensible," Ferragu said.
Tesla shares are currently up 10% at 331.5 dollars on the Nasdaq.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
According to analyst Pierre Ferragu, the California-based company brought up "pretty strong elements" on concerns recently expressed by investors, such as: (1) cash burn, (2) profitability and (3) sustainability of demand and competitiveness.
"Last night was epic," New Street Research wrote in a note to clients.
"We have the conviction Tesla won't burn cash anymore, will now be profitable, and meet unprecedented demand," the equity research house said.
New Street cited "exciting times" for Tesla and the auto industry as a whole.
"In these circumstances, we see the stock moving to the next level, and our 530-dollar price target suddenly appears sensible," Ferragu said.
Tesla shares are currently up 10% at 331.5 dollars on the Nasdaq.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.