4 big analyst picks: Tesla a Top Pick at Morgan Stanley on AI mojo
By Davit Kirakosyan
Here is your Pro Recap of the biggest analyst picks you may have missed since Friday: upgrades for Tesla, CSX, DoorDash, and Tenable.
InvestingPro subscribers got this news first. Never miss another market-moving headline.
Tesla gets Overweight rating at Morgan Stanley, named Top Pick
Tesla (NASDAQ:TSLA) shares were soaring nearly 9% in recent trading after Morgan Stanley upgraded the company to Overweight from Equalweight and raised its price target to $400 from $250, as reported in real-time on InvestingPro.
The analysts said that they believe Dojo, a dedicated supercomputer, has the potential to increase Tesla's enterprise value by as much as $500B through accelerated adoption in Mobility (robotaxi) and Network Services (SaaS).
To improve the FSD system's efficacy, says the analysts, Tesla needs to address challenges related to data collection, processing power, speed, efficiency, and scalability. And they say Dojo is designed to meet these challenges by providing the computational power necessary to process extensive real-world data from Tesla's vehicles.
The firm also named Tesla its Top Pick.
Shares were lately changing hands at $270.25.
DoorDash upped to Hold at Jefferies
DoorDash (NYSE:DASH) shares were up some 1.1% recently after Jefferies upgraded the company to Hold from Underperform and raised its price target to $90 from $70.
The analysts said in a note that the online food ordering and delivery company has a "DASHing EBITDA outlook."
Jefferies added:
"Our profit decomposition suggests consensus underappreciates tailwinds to EBITDA from further advertising penetration and enhancements to underlying unit economics."
The analysts also believe the company has a "long runway for margin expansion... driven by further advertising penetration and improvements to underlying economics."
Shares were lately trading at $83.12.
Tenable upped to Overweight at JPMorgan
Tenable (NASDAQ:TENB) shares popped Monday after JPMorgan upgraded the cybersecurity firm to Overweight from Neutral and raised its price target to $56 from $51, triggering nearly a 4% recent climb in the shares.
The analysts said they "see an attractive opportunity for better growth, margin expansion, and FCF moving through the back half of the year into FY24 for TENB."
They added:
"As demand continues to build, execution is improving, the company continues to dominate peers in core VM markets, and management is taking a thoughtful approach toward expansion into adjacent markets."
Shares were recently up 3.8% to $45.88.
CSX upgraded at BofA on new management
BofA Securities upgraded CSX (NASDAQ:CSX) to Buy from Neutral on Friday, raising its price target to $36 from $34.
The upgrade came on the naming of Mike Cory as new COO. Cory brings essential Precision Scheduled Railroading (PSR) expertise following the departure of the former COO. The company’s shares had declined 8.1% since the departure last month due to operational concerns.
Kevin Boone was also named Chief Commercial Officer, the first in this role, thanks to his customer and supply chain connections.
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4 big analyst picks: Tesla a Top Pick at Morgan Stanley on AI mojo
