Merrill Lynch Upgrades Tesla To Hold, More Than Doubles PT

Merrill Lynch Upgrades Tesla To Hold, More Than Doubles PT

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Merrill Lynch upgraded Tesla to Hold from Sell citing the company's "unlimited" access to low-cost capital. Merrill Lynch analyst John Murphy also ramped up the stocks’s price target to $1,750 (6% upside potential) from $800.” data-reactid=”12″>Merrill Lynch upgraded Tesla to Hold from Sell citing the company’s “unlimited” access to low-cost capital. Merrill Lynch analyst John Murphy also ramped up the stocks’s price target to $1,750 (6% upside potential) from $800.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In a note to investors, Murphy said: “While we remain skeptical that TSLA (TSLA) will be the dominant EV automaker in the long-run, if a big global footprint can be built with no-cost capital, the ‘growth’ story would carry the day for the stock.” The analyst also added that Tesla’s unlimited access to low-cost capital should “accelerate its revenue growth rate to 50% annually over the next five years".” data-reactid=”13″>In a note to investors, Murphy said: “While we remain skeptical that TSLA (TSLA) will be the dominant EV automaker in the long-run, if a big global footprint can be built with no-cost capital, the ‘growth’ story would carry the day for the stock.” The analyst also added that Tesla’s unlimited access to low-cost capital should “accelerate its revenue growth rate to 50% annually over the next five years”.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On Aug. 13, Morgan Stanley analyst Adam Jonas raised TSLA to Hold from Sell citing a bullish outlook for the company’s third-party battery sales and electric-vehicle powertrain business. Jonas lifted the price target to $1,360 (17.6% downside potential) from $1,050.” data-reactid=”14″>On Aug. 13, Morgan Stanley analyst Adam Jonas raised TSLA to Hold from Sell citing a bullish outlook for the company’s third-party battery sales and electric-vehicle powertrain business. Jonas lifted the price target to $1,360 (17.6% downside potential) from $1,050.

The rating upgrades come just days after Tesla announced a 5:1 stock split in the form of a stock dividend and stated that shares will begin trading on a split adjusted basis on Aug. 31. The company announced that “Each stockholder of record on Aug. 21 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on Aug. 28.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Currently, the Street is sidelined on the stock. The Hold analyst consensus is based on 15 Holds, 4 Buys, and 9 Sells. Given the year-to-date stock price rally of 295%, the average price target of $1,291.15 implies downside potential of about 22%. (See TSLA stock analysis on TipRanks).” data-reactid=”20″>Currently, the Street is sidelined on the stock. The Hold analyst consensus is based on 15 Holds, 4 Buys, and 9 Sells. Given the year-to-date stock price rally of 295%, the average price target of $1,291.15 implies downside potential of about 22%. (See TSLA stock analysis on TipRanks).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related News:
Tesla Rises 6% In After-Hours On 5-for-1 Stock Split
Tesla CEO Elon Musk Sees ‘Strong’ Car Order Demand Despite Covid-19
Tesla’s Elon Musk Is Open To Offering Software And Batteries To Competitors” data-reactid=”29″>Related News:
Tesla Rises 6% In After-Hours On 5-for-1 Stock Split
Tesla CEO Elon Musk Sees ‘Strong’ Car Order Demand Despite Covid-19
Tesla’s Elon Musk Is Open To Offering Software And Batteries To Competitors

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