Tesla Upgraded to Outperform with a Price Target of $1060

Tesla got upgraded to outperform yesterday by Joseph Osha of JMP Security with a massive price target of $1060.

Tesla market cap is presently sitting at $137.464 billion, even as the highly contagious coronavirus bleeds world market.

This is huge!. 8 months ago, analysts hardly give Tesla a Buy rating and a price target above $500, but that story has changed.

After posting profit in third and fourth quarter, even one of the most bearish Tesla analyst Adam Jonas of Morgan Stanley has a minimum price target of $500.

“The recent market-driven pullback provides investors with a good opportunity to enter the stock in our opinion, and a perusal of offerings from competitors suggests that TSLA’s market position should continue to be dominant. Interestingly enough, revisions to our 2021 model put us only moderately above consensus, but a look at the longer-term potential for TSLA’s growth suggests the stock should be more highly valued on the 2021 outlook than it currently is,” writes analysts Joseph Osha.

JMP moves to a Market Outperform rating from Market Perform and assigns a price target of $1,060 vs. the average sell-side PT of $537.13.

Osha thinks Tesla should be valued at 32X EV/EBITDA and 5X EV/Revenue based on the firm’s 2021 estimates.

Tesla is ramping the delivery of Model Y, starting this month. Buyers of the SUV electric car have received emails from Tesla, asking them to get ready for their deliveries.

Next month is Tesla’ battery day!. It’s expected to be legendary and keep all so-called Tesla Killers and competitions on a run. This should catapult Tesla atleast 4 more years ahead of competitions.

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