Analysts rate Tesla Inc. (TSLA:NSD) with a Buy rating and $318.70 target

STA Research
by: STA Research
Tesla Inc

Based on the TSLA stock forecast from 10 analysts, the average analyst TSLA stock price is USD 318.70 over the next 12 months. Tesla Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Tesla Inc. is Slightly Bullish, which is based on 10 positive signals and 6 negative signals. At the last closing, TSLA stock price was USD 270.21. TSLA stock price has changed by -17.88% over the past week, -631.55% over the past month and +10.50% over the last year.

About Tesla Inc. (TSLA:NSD)

Electric vehicles, as well as systems for the generation and storage of energy, are among the products that Tesla, Inc. creates, develops, manufactures, leases, and sells in markets including the United States, China, and other countries. Automotive and Energy Generation and Storage are the two business divisions that the company operates under.

Before February 2017, this business was known by its previous name, Tesla Motors, Inc., but it officially changed its name to Tesla, Inc. in that month. Tesla, Inc. was established in 2003 and currently has its headquarters in the city of Austin in the state of Texas.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

TSLA stock price has shown top quartile earnings growth compared to its sector in the previous 5 years.

Superior Revenue Growth

This stock has shown top quartile revenue growth compared to its sector in the previous 5 years.

High Gross Profit to Asset Ratio

TSLA stock price is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

TSLA stock price is trading high compared to its peers on a price-to-earnings basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Overpriced on a cash flow basis

TSLA stock price is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

TSLA stock price is trading high compared to its peers on a price-to-free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Disclaimer

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