Tesla Motors (NASDAQ:TSLA) shares were given a booster in the arm yesterday, after analysts of Pacific Crest Securities released a research note that reaffirmed their bullish outlook for the car maker’s prospects.
The research at Pacific Crest was headed by Brad Erickson, who has given Tesla a $316 price target and an Outperform rating.
Given its ambitious production and unit delivery targets, Tesla Motors has been favored by many Street analysts on the basis of sustained strong demand of the Model S. Pacific Crest analysts believe the demand for Tesla vehicles will continue to increase, and they are also optimistic about the upcoming Model X crossover.
Unlike analysts at Morgan Stanley who cut their price target on Tesla yesterday from $320 to $290, citing lower-than-anticipated deliveries in the medium-term, Pac Crest believes Tesla will outperform its targets for 2015.
The firm also notes that Tesla’s highly favorable average selling price (ASP) near $103,000 will allow the company to maintain its high margins.
Tesla stock has witnessed wild swings in the last month, since oil prices have been in free fall and concerns surrounding the company’s prospects in China are taking a toll on its shares.
On Monday, analysts at FBR Capital slapped a $150 price target on the electric automaker, and reaffirming a Market Perform rating. But yesterday, Tesla stock closed up just over 4% to around $405.8 despite the slashed projections from Morgan Stanley analysts.
Tesla Motors is up 2.5% to $211 in early trading today on the Nasdaq. The stock has risen 36% this year.
Source: http://www.bidnessetc.com/31139-pacific-crest-securities-reaffirms-buy-rating-on-tesla-motors-tsla/
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