Analyst Rating Coverage
Jefferies & Co.(Rank #18 of 341) issued a research report on Tesla’s stock and maintained the “Hold” rating. The research company also assigned a target valuation on the stock of $265 up from $185 per share.
TSLA Stock Forecast
Based on the stock forecast provided by 36 analysts, the average analyst target price for Tesla Inc over the next 12 months is USD 213.31. This indicates that, on average, the analysts expect a decrease in Tesla’s stock price compared to its current value.
The average analyst rating for Tesla Inc is “Buy,” suggesting that the majority of analysts who cover the stock recommend buying it. This positive sentiment could be influenced by various factors such as Tesla’s innovative products, its position in the electric vehicle market, or its potential for future growth.
Stock Target Advisor has a slightly bullish view on Tesla Inc. Their analysis is based on 10 positive signals and 5 negative signals, indicating a relatively optimistic outlook for the stock.
As of the last closing, Tesla Inc’s stock price was USD 274.43. This price reflects a positive change of +4.84% over the past week, a significant increase of +12.29% over the past month, and a rise of +9.44% over the last year. These figures suggest that Tesla’s stock has experienced recent positive momentum and has performed well in both the short and long term.
Tesla’s Fundamental Analysis
What to like:
- Low debt: Tesla has a lower level of debt compared to its peers, placing it in the top quartile. This indicates a more flexible financial position for the company. However, it’s important to consider the company’s growth potential and industry dynamics, as low debt could also indicate a lack of growth opportunities.
- Superior risk-adjusted returns: Tesla’s stock has performed well on a risk-adjusted basis compared to its sector peers over a hold period of at least 12 months. This places Tesla in the top quartile for risk-adjusted returns.
- Positive cash flow: Tesla has generated positive total cash flow in the most recent four quarters. This indicates that the company’s cash inflows have exceeded its outflows during that period.
- Positive free cash flow: Tesla has generated positive total free cash flow in the most recent four quarters. This suggests that the company’s operating cash flow has been sufficient to cover its capital expenditures.
- Superior return on assets: Tesla’s management has delivered better return on assets (ROA) in the most recent four quarters compared to its peers, positioning the company in the top quartile. This indicates effective utilization of its assets to generate profits.
- Superior capital utilization: Tesla’s management has achieved better return on invested capital (ROIC) in the most recent four quarters compared to its peers, placing it in the top quartile. This signifies efficient utilization of capital to generate returns.
- High market capitalization: Tesla is one of the largest entities in its sector and ranks in the top quartile. Larger companies like Tesla often exhibit greater stability.
- Superior earnings growth: Tesla has demonstrated top quartile earnings growth over the previous five years compared to its sector peers. This indicates strong growth in its profitability.
- High Gross Profit to Asset Ratio: Tesla ranks in the top quartile compared to its peers in terms of Gross Profit to Asset Ratio. This ratio is favored by value investors as it indicates the potential for superior long-term returns.
- Superior return on equity: Tesla’s management has delivered better return on equity (ROE) in the most recent four quarters compared to its peers, placing it in the top quartile. This highlights the company’s ability to generate higher returns for its shareholders.
What not to like:
- Overpriced compared to book value: Tesla’s stock is trading at a high valuation compared to the median of its peers based on the price-to-book value ratio. This suggests that the stock may be relatively expensive in relation to its book value.
- Overpriced compared to earnings: Tesla’s stock is trading at a high valuation compared to its peers based on the price-to-earnings ratio, and it exceeds the sector median. This indicates that investors are willing to pay a premium for Tesla’s earnings.
- High volatility: Tesla’s total returns have exhibited above-median volatility within its sector over the past five years. Investing in such a stock requires careful consideration of risk tolerance.
- Overpriced on cash flow basis: Tesla’s stock is trading at a high valuation compared to its peers based on the price-to-cash-flow ratio. It is priced above the median for its sector, indicating caution is needed before making a purchase.
- Overpriced on free cash flow basis: Tesla’s stock is trading at a high valuation compared to its peers based on the price-to-free-cash-flow ratio. It is priced above the median for its sector, suggesting careful evaluation before considering an investment.
