Analysts on Tesla stock
According to the latest the recent data compiled by Thomson Reuters, 33% of analysts covering Tesla (TSLA) have given the stock “buy” recommendations. Another 38% of analysts have recommended a “hold,” and the remaining 29% of analysts expect Tesla stock to underperform and recommended a “sell.” These recommendations are based on the consensus data of 24 analysts covering Tesla stock.
Target price for the next 12 months
As of November 1, Tesla’s consensus 12-month target price was $323.48. This consensus price target has risen in the last three months from near $311.41 earlier. However, the company’s consensus target price didn’t reflect any major upside potential from its market price of $321.08.
After Tesla’s 3Q17 earnings results, 38% of analysts are maintaining a cautious approach with a “hold.” Despite accelerating revenue growth, investors’ concerns about Model 3 production bottlenecks and the company’s ability to achieve its ambitious high volume production targets could be the key reason for this cautious approach.
Recommendations on other automakers
Now we’ll take a quick look at how Tesla’s recommendations compare to legacy auto companies’ (XLY) recommendations. About 42% of analysts recommend a “buy” on GM stock with ~7.9% upside potential from the market price of $43.13. In the case of Ford (F), only 17% of analysts recommended a “buy” with ~3% upside potential. For Fiat Chrysler (FCAU), the Italian-American auto giant, about 40% of analysts recommended a “buy” with about 16.5% upside potential.
In the next part, we’ll explore some key technical levels in Tesla’s stock after its 3Q17 results.