Teslas(TSLA) - Get Reportrun over the past few weeks has analysts at Jefferies concerned about theelectric-vehicle producer'svaluation, leading the firm to downgrade the stock to hold from buy.<\/p>\n
Jefferies raised its price target on Tesla to $800 a share from $600. But that new target still represents 4.1% potential downside from the stocks Monday closing price of $833.79.<\/p>\n
At last check Tesla shares were down 2.9% at $810. The stock had dropped more than 9% in the three trading days through Monday.<\/p>\n
The Palo Alto, Calif., companys shares havejumped 60%since Jan. 14, and Jefferies says that at least some of this increase is well-deserved.<\/p>\n
Faster debt reduction, above-consensus growth guidance in cars and energy, and battery-industry news flow over the past six weeks are all reasons for the stocks increase.<\/p>\n
Jefferies is bullish on the auto segment, raising its price-target valuation for the division to $600 from $500 thanks to increased growth\/profitability expectations.<\/p>\n
The Jefferies note is mostly bullish. The firm calls Tesla one of the few EV manufacturers likely to grow earnings and return on capital investment over the next two years.<\/p>\n
The firm also expects five-year compound annual revenue growth to exceed 20% as Tesla ramps up Model 3 sedan and Model Y compact crossover production. <\/p>\n
The $800 price target factors in Tesla pursuing additional growth in storage\/generation and selling batteries to third party manufacturers.<\/p>\n
Jefferies has a market estimate for stationary storage cells between $90 billion and $235 billion by 2025 through 2030. <\/p>\n
<\/p>\n
See the original post here: <\/p>\n
Tesla Voltage Reduced at Jefferies on Valuation Concern - TheStreet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Teslas(TSLA) - Get Reportrun over the past few weeks has analysts at Jefferies concerned about theelectric-vehicle producer'svaluation, leading the firm to downgrade the stock to hold from buy. Jefferies raised its price target on Tesla to $800 a share from $600. Continue reading