Why this analyst believes Tesla's (TSLA) stock will double within a year

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

TSLA – Berenberg analyst has a price target of $500 on Tesla shares.

KEY POINTS
  • “We maintain our bullish view on Tesla and see no reason to walk away from our price target of $500,” analyst Alexander Haissl of Berenberg writes.
  • His price target of $500 implies more than 100% upside in the next year.
  • Tesla shares have fallen more than 26% over the last three months, but have bounced 15% in June as more optimistic traders snap up the stock.

One of Wall Street’s most optimistic Tesla analysts is sticking with his call for the stock to double over the next 12 months, telling clients that recent negative sentiment is “decoupled from reality.”

The market fails to understand Tesla’s “technological and cost advantage” and remains on track for solid cash flow in the second quarter, analyst Alexander Haissl of Berenberg wrote. His price target of $500 implies more than 100% upside in the next year.

“We maintain our bullish view on Tesla and see no reason to walk away from our price target of $500,” Haissl wrote in a note sent to clients Thursday. “Demand worries are overblown, as the Q1 volume weakness was largely self-inflicted by logistic problems, uncertainty about store closures and changing pricing structure, and not indicative of the underlying demand situation.”

New Street Research analyst Pierre Ferragu is the only analyst on Wall Street more bullish than Haissl, according to FactSet data. Indeed, Haissl’s target is 110% higher the the median analyst forecast of $238, just above Thursday’s closing price of $213.91.

Tesla’s stock has slid in recent months as the company embarked on a cost-cutting spree, analysts questioned demand for its vehicles and investors wondered about its future in China. Tesla shares have fallen more than 26% over the last three months, but have bounced 15% in June as more optimistic traders snap up the stock at the lower price.

Haissl added that the recent downswing did not derail his positive line of thinking.

“Q1 weakness does not change our positive fundamental view, as it is not indicative of the underlying strength of the business,” he wrote. “The demand debate is likely to remain an ‘on paper’ battlefield between bulls/bears and will only be resolved once hard facts are reported, as management is given little credibility for any reassuring commentary.”


Tesla, Inc. (TSLA - Get Rating) shares were trading at $214.88 per share on Friday morning, up $0.97 (+0.45%). Year-to-date, Tesla, Inc. (TSLA - Get Rating) has declined -35.43%, versus a 16.23% rise in the benchmark S&P 500 index during the same period.


This article is brought to you courtesy of CNBC.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: MAT | Mattel, Inc. News, Ratings, and Charts

Mattel (MAT) plummets as toy mogul loses interest in potential merger

Mattel’s stock falls after toy mogul Isaac Larian loses interest in merging his company with Mattel
NYSE: ORCL | Oracle Corporation Common Stock News, Ratings, and Charts

Oracle (ORCL) shares surge after-hours following earnings report

Oracle shares rise after beating expectations
NYSE: X | United States Steel Corporation Common Stock News, Ratings, and Charts

Why U.S. Steel (X) shares got an upgrade from a Vertical Group analyst

Vertical Steel thinks U.S. Steel shares could rise due to big production cut
NYSE: SHOP | Shopify Inc. Class A Subordinate Voting Shares News, Ratings, and Charts

Shopify (SHOP) shares soar after unveiling plans for a new distribution network

Shopify hit an all-time high after announcing plans for distribution network
NASDAQ: NFLX | Netflix, Inc. News, Ratings, and Charts

New Adam Sandler movie sets a Netflix (NFLX) viewing record

Adam Sandler and Jennifer Aniston's Netflix, Inc. flick "Murder Mystery" may have broken viewing records.

Read More Stories


More Tesla, Inc. (TSLA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TSLA News
Page generated in 1.0268 seconds.