MW Tesla stock upgraded by Wedbush after 'paradigm changer' delivery numbers
By Mike Murphy
Wedbush's Ives boosts outlook, sees Tesla's profitability improving in the coming years
Wedbush Securities has upgraded its outlook for Tesla Inc., following stronger-than-expected quarterly deliveries.
On Sunday, Wedbush raised its price target for Tesla $(TSLA)$, to $1,000 a share from $950, with a long-term bull-case price of $1,300 a share. Tesla shares closed Thursday at $661.75 (markets were closed Friday).
Wedbush analyst Daniel Ives also changed his rating from hold to outperform. "In our opinion the 1Q delivery numbers released on Friday was a paradigm changer," he said in a note.
On Friday, Tesla reported first-quarter deliveries, .
"We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector," Ives said Sunday. He added "eye popping delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent 40% of deliveries for Musk & Co. by 2022."
Ives and his team also see Tesla's profitability significantly improving over the next three to four years, with the potential for annual earnings per share of $20 by 2026.
Tesla shares are down 6.2% year to date, but have skyrocketed 628% over the past 12 months.
-Mike Murphy; 415-439-6400; AskNewswires@dowjones.com
$(END)$ Dow Jones Newswires
April 04, 2021 22:01 ET (02:01 GMT)
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