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Jefferies Raises Tesla Price Target To $400: 'A Better Foundation'

Dave Royse

Tesla Inc (NASDAQ: TSLA) shares rose Monday after Jefferies boosted its target price on the stock along with a boost in its EBIT and per share earnings estimates in anticipation of revenue and earnings growth next year.

The Analyst

Phillippe Houchois maintained a Buy rating on Tesla and raised the price target from $300 to $400. 

The Thesis

It might not be completely smooth sailing in the short-term for the electric car maker, but third-quarter gross margin levels are "consistent with sustained profitability," and Tesla's average selling prices should stabilize, Houchois said in a Monday note. (See his track record here.) 

Jefferies is raising his 2020 EBIT estimate by 24% to $1.16 billion and boosting the EPS estimate for 2020 from $1.81 to $3.04.

"Stabilization in 2019 sets a better foundation for a return to growth in 2020 revenue and earnings," Houchois said. "We value the absence of legacy issues, net growth in revenue and earnings and persistent technology edge from battery to autonomous."

Price Action

Tesla shares were up 3.34% at $348.39.

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Photo courtesy of Tesla. 

Latest Ratings for TSLA

Date Firm Action From To
Nov 2019 Maintains Buy
Oct 2019 Maintains Equal-Weight
Oct 2019 Downgrades Neutral Sell

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

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