Tesla’s (NASDAQ:TSLA) strong bull run has been subdued in recent months as the company struggles to build on its 2020 momentum. Nevertheless, the company’s Q2 earnings results flexed Tesla’s strong quarterly performance with over 200,000 deliveries. Tesla also reported $10.2 Billion in automotive revenues, far exceeding its EV competition.
As a result of the earnings, Goldman Sachs analyst Mark Delaney raised the Tesla stock price target to $875 a share. The boosted target represents an upside of 33% from the current trading price. The analyst highlighted the companies strong delivery growth. In particular, the Model Y/3 deliveries which grew 9% quarter-on-quarter and 148% YOY.
Tesla has received a wave of analyst upgrades after the earnings announcement. The average target for coverage released on 27/07/21 is $762.42. This represents an upside of 15.9%, which is a positive sign for shareholders. However, prior to the earnings analysts at Morgan Stanley had already upgraded the stock with a $900 price target.
Morgan Stanley sets a $900 price target
On July 16, Morgan Stanley analyst Adam Jonas increased the companies price target to $900 a share. The target represents a 39.3% upside from the current trading price. Jonas noted the potential of Tesla’s emerging Software-as-a-service business may outweigh the companies hardware business in the future.
“We believe it is possible that the value of Tesla’s recurring software revenue may exceed the value of its hardware business.”
Bank of America sets $750 target
However, Jonas is not the only analyst to upgrade their coverage on Tesla stock prior to Q2 earnings. Analyst John Murphy from the Bank of America recently upgraded Tesla’s price target to $750 a share. Murphy noted the $750 valuation was derived from a 98x EV/EBITDA multiple on an average of 2021 and 2022 estimates.
Furthermore, the high multiple is supported by “track record of growth, consistent capital raises, and overall investor hype,” said Murphy.
Cannacord analyst lowers Tesla’s 12 month price target
Cannacord Genuity analyst Jed Dorsheimer lowered their Tesla stock price target to $768 a share whilst maintaining a Buy rating on the stock. The analyst previously noted Tesla’s energy business has an “Apple-esque ecosystem“.
This has allowed the company to seamlessly connect its electric car, solar and battery storage products. Nevertheless, the company lowered the price target which is on par with the average target for coverage on 27/07/21.
See the full Tesla stock forecast for 2021 below:
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group. For full disclosure to our viewers, the author of this article has a long term position in the stock.
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