Tesla: Jefferies raises target price
(CercleFinance.com) - Jefferies reinstates its "buy" rating on the stock of the electric car manufacturer Tesla, while raising its target price from 300 dollars to 400 dollars (19% upside potential), in the wake of its new estimate for 2020 operating profit, which it has raised by 24%.
The broker believes that "Q3 reported gross margin levels that are consistent with sustained profitability," adding "while ASPs should stabilize ahead of H2 2020 improvements".
"Stabilization in 2019 sets a better foundation for a return to growth in 2020 revenue and earnings," Jefferies continues, adding, "We continue to see Tesla maintaining its edge in product, affordability and technology".
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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.
The broker believes that "Q3 reported gross margin levels that are consistent with sustained profitability," adding "while ASPs should stabilize ahead of H2 2020 improvements".
"Stabilization in 2019 sets a better foundation for a return to growth in 2020 revenue and earnings," Jefferies continues, adding, "We continue to see Tesla maintaining its edge in product, affordability and technology".
Copyright (c) 2019 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.