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Analysts Upgrade Tesla, Stock Jumps 6% in Pre-Market Trade

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Tesla (NASDAQ:TSLA) stock rose 6.0% in the pre-market trading session at 8:26 AM ET today. The stock rose after three Wall Street analysts upgraded the stock. JMP Securities analyst Joseph Osha increased its target price on Tesla stock from $1,050 to $1,500 but maintained an “outperform” rating. 

According to a report from TheFly, “The analyst is citing the company’s significant upside in Q2 deliveries with 90.7K shipments vs. his forecast of 73.8K and the consensus figure of 70.3K. Osha adds that Tesla’s Q2 delivery outcome is significant and supports his outlook for continued competitive gains as the company’s decline of about 5% from last year’s volume compares to the industry where demand is collapsing at a rate at least 3-times that pace.” 

J.P. Morgan analyst Ryan Brinkman also increased its target price on Tesla stock from $275 to $295 but maintained an “underweight” rating. According to a report from TheFly, “The analyst increased estimates to account for Tesla’s better than expected Q2 production and deliveries report.”

Meanwhile, a Deutsche Bank analyst increased its target price on Tesla stock from $900 to $1,000.

Analysts’ recommendations for Tesla stock

Among the 33 analysts following Tesla stock, nine recommend a “buy,” 11 recommend a “hold,” and 13 recommend a “sell.” Analysts have an average target price of $732.14 on Tesla. The target price implies a return of -39.4% based on the closing price of $1,208.66 on July 2. The consensus target price for the stock has risen from $626.30 in June—a growth of 16.9%.

Growth projections

In the first quarter of 2020, Tesla reported an adjusted EPS of $1.14 compared to -$1.77 in the first quarter of 2019. The adjusted EPS beat analysts’ consensus expectation of -$0.25. Tesla generated sales of $5.99 billion—a growth of 31.8% from the same quarter a year ago. The company met analysts’ consensus sales expectation of $5.98 billion.

Wall Street analysts expect Tesla to report an adjusted EPS of -$1.36 on total revenue of $5.0 billion in the second quarter. Analysts also expect the company’s sales to rise by 10.3% YoY (year-over-year) in 2020 to $27.1 billion. The sales could rise by 39.2% YoY in 2021 to $37.7 billion. The adjusted EPS would rise from $0.20 in 2019 to $4.05 in 2020. Analysts also expect an adjusted EPS of $11.29 in 2021. 

Stock performance

On July 2, Tesla stock gained 8.0% and closed at $1,208.66 with a market cap of $224.1 billion. Tesla’s stock price has risen by 22.6% in the trailing five-day period, while it has risen by 438.3% in the trailing 12-month period. The stock is trading 1.6% below its 52-week high of $1,228.00 on July 2. The stock was also trading 472.8% above its 52-week low of $211.00 on August 23, 2019. On a year-to-date basis, the stock has risen by 188.9% as of July 2.

Based on the closing price on July 2, Tesla stock was trading 18.5% above its 20-day moving average of $1,019.86. The stock is also trading 35.3% above its 50-day moving average of $893.48 and 57.5% above its 100-day moving average of $767.41. With a 14-day relative strength index score of 77, the stock is overbought.

Tesla stock has a lower Bollinger Band level of $863.70, while its middle Bollinger Band level is $999.96. On July 2, the stock closed near its upper Bollinger Band level of $1,136.22, which also suggests that it’s overbought. 

At 9:04 AM ET today, the S&P 500 futures rose 1.29%, while the Dow futures rose 1.49%.

Read Tesla Takes a Dig at Short Sellers Einhorn and Chanos, Will Tesla’s Q2 Results Push It into the S&P 500?, and Will NIO’s EC6 Beat Tesla’s Model Y in the Chinese Market? to learn more.

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