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What Are Analysts Recommending for Tesla Stock?

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Analysts’ consensus

As of May 9, 2016, 45% of analysts covering Tesla Motors (TSLA) have given the stock a “buy” recommendation, while 30% have recommended a “sell.” The remaining 25% are still maintaining a “neutral” view on the company’s stock. This reflects no major changes in analysts’ outlook after Tesla’s 1Q16 earnings release. Now, let’s take a closer look at these recommendations.

Investors should pay attention to analyst recommendations because they can affect the company’s stock price movement. If a popular analyst changes his or her view, a significant short-term movement in the stock price could follow.

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Target prices revised upward

After Tesla’s 1Q16 earnings release, Tesla’s consensus 12-month target price was revised upward to $283, from $262. This new price target reflects an upside potential of 35.5% from its current market price of $208.92 as of May 9, 2016.

Among all popular analysts, Adam Jonas of Morgan Stanley maintained the highest price target of $333 for Tesla stock, which represents a 59% upside potential.

Ryan Brinkman of JPMorgan Chase and Colin Langan of UBS are still expecting Tesla to underperform the broader market. But they have also revised their target prices upward to $185 and $160, respectively.

This upward revision in target prices can be seen as a positive indication for Tesla stock. The company’s focus on timely delivery of its Model 3 could be one of the key reasons behind the upward revision. Higher production and deliveries of the Model S and Model X in 2Q16 are going to play a critical role in keeping these positive sentiments intact.

Recommendations for other automakers

By comparison, analysts’ consensus “buy” recommendations for other automakers (VCR), with expected 12-month stock price movements, are as follows:

  • Ford (F): 38.1% of analysts with a 17.6% upside potential
  • Fiat Chrysler Automobiles (FCAU): 53.3% of analysts with a 32.4% upside potential
  • General Motors (GM): 50% of analysts with a 21.9% upside potential
  • Ferrari (RACE): 56.3% of analysts with 12.1% upside potential

In the final part of our series, we’ll look at updated key technical price levels for Tesla stock.

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