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JMP Securities Stuns Tesla Bears by Raising Q2 Model 3 Estimate


Jun. 6 2019, Updated 2:15 p.m. ET

Tesla stock

On June 6 at 12:35 PM EDT, Tesla (TSLA) stock was trading at $207.31, up 5.4% on the day. Earlier today, the stock posted a daily high of near $210.96, up nearly 7.3% from yesterday’s closing price. The stock’s rally has been primarily fueled by media reports suggesting strong second-quarter Tesla car deliveries in North America. These reports gave Tesla bulls a reason to win over the bears.

In the same context, brokerage house JMP Securities’ optimistic statement about Tesla further boosted investors’ confidence. Let’s take a closer look.

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JMP Securities stuns Tesla bears

On June 5, JMP Securities analysts Joseph Osha and Hilary Cauley said in a note, “More Model 3s were registered in April and May than during all of the first quarter,” CNBC reported. The analysts expect Tesla’s second-quarter deliveries to be notably higher than in the first quarter, so JMP Securities has raised its Tesla Model 3 deliveries estimate.

While the brokerage house maintained its “market outperform” rating on Tesla stock, it slightly lowered its target price on Tesla to $347, still reflecting a potential upside of 76.5% from yesterday’s closing price.

Analysts’ consensus ratings

Of the 31 analysts surveyed by Thomson Reuters, ten analysts have given Tesla stock “buy” ratings, and the remaining nine and 12 analysts have given it “holds” and “sells,” respectively.

Wall Street analysts’ consensus target price on Tesla is $267.90, which reflects a 36.3% potential upside from its June 5 closing price.

If the company manages to significantly improve its car deliveries in the second quarter on a sequential basis, it could regain investors’ confidence and drive its stock up.


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