Tesla Stock Sees New Battle Lines Ahead of Earnings

Analysts cannot agree with the rating and target price of Tesla share ahead of Q2 earnings.

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There has been a flurry of Tesla target-price changes in recent weeks. There had to be, because the stock has gone wild and without adjusting target prices it would have been difficult for some analysts to maintain ratings.

Target Price raised to USD 230 -350

The average price target for Tesla stock is up about $40 since late May rising to roughly $230 from $190, according to FactSet. Wells Fargo and Baird are the latest to lift price targets. Monday, Wells analyst Colin Langan raised his price target to $265 from $170. He still rates Tesla stock at Hold. Baird analyst Ben Kallo, also raised his Tesla stock price target Monday to $300 from $252. Kallo rates Tesla stock at Buy. The highest target price on the Street among larger U.S. research providers and brokerages is at $350 a share from New Street Research analyst Pierre Ferragu. The average price target among Buy-rated analysts is about $300.

Disagreement among analysts

The second-quarter consensus estimates also indicate Wall Street thinks Tesla’s operating-profit margins will still be in the 11% range, a little lower than in the first quarter... The bulls expect improvement in the second half of the year. Hold-rated analysts aren’t so sure. “We forecast auto gross [profit] falls to 17.5% due to continued price cuts and weaker mix,” wrote Langan in his Monday report.

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Tesla Stock Sees New Battle Lines Ahead of Earnings - Barrons