Tesla stock

Credit Suisse boosts Tesla stock valuation to $1,125 after Hertz deal

In recent weeks, Tesla stock (NASDAQ:TSLA) has gained significant momentum on Wallstreet after a strong Q3 performance. In particular, Tesla shattered their previous quarterly delivery record with 241,391 vehicles being sold.

As a result, the company also broke its previous revenue record, generating $13.57 Billion for the quarter. The strong Q3 performance alongside the companies deal with Hertz to deliver 100,000 vehicles, saw investors begin a buying frenzy on Tesla stock.

In fact, the stock jumped above the $1,000 mark for the first time since the companies 5:1 split in August last year. Tesla’s recent success hasn’t gone unnoticed on Wallstreet either, with Credit Suisse and Morgan Stanley raising their Tesla stock valuations. Here’s what the analysts had to say about Tesla’s recent bull run.

Credit Suisse doubles down on Tesla stock valuation

Earlier today, Goldman Sachs analyst Mark Delaney raised Tesla’s valuation to $1,125 a share. Delaney noted that the Hertz (HTZZ) order of 100,000 Model 3 vehicles was of great significance for Tesla. Not only will Tesla benefit from the increase in deliveries, but the deal will also assist Tesla in sustaining strong growth and margins which is a positive for investors.

The analyst added that Tesla already boasts a large backlog in vehicles due to high demand, however the Hertz order will also provide some revenue visibility for the company over the next few years. Lastly, a corporate deal of this magnitude may also encourage other rental fleets to go electric, potentially using Tesla Model 3’s to do so.

Overall, Delaney’s updated valuation represents an 8% upside from the current trading of Tesla stock.

Morgan Stanely sets $1,200 valuation for Tesla stock after strong Q3 results

Another Wallstreet analyst, Adam Jonas from Morgan Stanley also raised the firm’s price target on Tesla stock to $1,200. Jonas highlighted Tesla’s strong Q3 performance, noting Tesla’s manufacturing leadership can further improve the companies costs and widen its vehicle user base. Jonas added that improved target is due to higher vehicle deliveries over the long run.

The analysts long term forecast sees 8.1 Million Tesla vehicles delivered by 2030, which is still considered conservative compared to Tesla’s forecast, which is 20 Million vehicles delivered annually by 2030. The target represents a healthy 14.6% upside from Tesla’s current trading price.

Tesla stock
Barcelona, Spain. March 2018: Tesla inc cars flagship store near Passeig de Gracia luxury shopping street with Tesla logo and an electric cars model S and X inside

Final Thoughts – Tesla stock gains traction on Wallstreet

Overall, Tesla continues to defy its critics by delivering on strong revenue growth and even stronger vehicle demand. Both Credit Suisse and Morgan Stanley currently hold the largest valuations of Tesla on the street, which represent an upside of 8% and 14.6% respectively. Lastly, the Hertz deal involving 100,000 Model 3 deliveries will benefit Tesla’s income statement but also provide investors some revenue visibility for investors as the deal is expected to bring Tesla $4.2 Billion.

The information above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. 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.

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