“Tesla’s earnings are due out on Wednesday, July 22 after the market closes. It will be must-see TV for Wall Street denizens.” – barrons
Analysts that have been propping up their price target on the electric car-making giant for weeks, and those that have been betting strongly that Tesla doesn’t deserve the massive price hike, will be judged next week Wednesday accordingly, once Tesla reports earnings next week Wednesday, July 22 after market closes.
Yesterday, Credit Suisse analyst Dan Levy raised his Tesla price target to $1,400, or twice the $700 target he’d given previously, on the heels of a monster rally that sent shares as high as $1,794.99 on July 13.
According to Levy, Tesla stock is priced for perfection, and any material hiccup could drive a correction.
“Tesla is now the world’s most valuable automaker even though it will only sell ~450-500k units this year (<1% global volume,” Levy said. “To justify the current stock price, we believe one must assume that by 2025 Tesla will set 2.2mn units (making it as large as German luxury brands, while trading at an elevated 30x+ PE [price/earnings] multiple.”
Levy’s new price target of $1,400 on shares of Tesla is well above the $881 average price target on the stock among more than 30 analysts on Wall Street, according to Bloomberg data.
Just 3 days ago, Piper Sandler analyst, Alexander Potter, raised his Tesla price target to $2322 because of the “faster-than-expected share gains” and big opportunities in software.
“While deliveries are a key driver of our increased near-term estimates, software is the biggest driver of our increased DCF-based price target,” – Potter added.
Zacks Consensus Estimate
According to Zacks consensus estimate, Tesla is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of +43.8%.
Revenues are expected to be $4.98 billion, down 21.6% from the year-ago quarter.
We all gonna need a huge popcorn box, come next week Wednesday!. Are you a buyer or a seller at this $1500 price level?.