Wedbush Analyst Daniel Ives has 5 big tech names he believes investors should own in this coronavirus sell-off period.
Tesla is his third pick. Ives has a HOLD rating with a $710.00 price target on Tesla. Tesla is currently trading around $620.
Daniel Ives Top 5 Stock Picks:
In an interview on The First Trade, Daniel said he believes the first quarter is not going to be pretty, especially in China. according to him: “Tesla is a name that from EV perspective is like 5G for Apple, you are looking at over a 12, 18, next year, next two years period, the question is can they get to a 100,000 Chinese units in the first year, I believe that is something that obviously is going to be a stretch, but ultimately I think that’s about 4x to 5x the U.S market”. If you believe 2021 numbers will be pretty, then you are buying in now, he adds.
Daniel Ives thinks The Street is going to look pass March 2020, and will instead focus on September, and 2021 numbers.
Tesla unit demand levels difficult to hit in Q1 due to virus, says Wedbush Wedbush
Analyst Daniel Ives said extended factory delays in Shanghai for Tesla appear to be getting back to normalized levels, but he believes hitting the 100,000 units level in the first year appears unlikely given the hit to consumer demand trends and buying behavior from the coronavirus outbreak. Given the demand overhang in China, as well as Europe, he believes that Q1 unit demand levels will be difficult to hit for Tesla, but he still believes reaching the company’s 500,000 unit demand levels for FY20 “remain an achievable bogey,” the analyst tells investors. He keeps a Neutral rating and $710 price target on Tesla shares.