Electric vehicle giant Tesla (TSLA: NSD) has seen its stock price fluctuate recently. Investors are left wondering: is this a buying opportunity or a sign to exit? Financial services firm Oppenheimer chimes in with its analysis.
Does Stock Target Advisor Agree with Oppenheimer?
Stock Target Advisor surprisingly gives TSLA a Buy rating despite the recent dips. According to our detailed analysis, we’ve pegged Tesla’s target price at approximately US$ 264.32. Supporting our stance is the projected price increase of nearly 48.77% within the next year. Even though the stock’s volatility is undeniable, the potential for a significant upside appears to outweigh the risks.
Tesla has been emitting positive signals through its superior risk-adjusted returns, positive cash flow, and robust return on assets. However, this does not overshadow the company’s apparent negatives, which include overpricing when compared to its book value and earnings, high volatility, and inflated price to cash-flow and free cash-flow ratios. Investors must dive deeper into their balance sheets and earnings reports when factoring these signals into their move.
How Does the Wider Market and Sector Analysis Look?
Market analysis shows that of the 28 analysts currently covering TSLA, the average target price is pegged at 246.9, with projections ranging from the lowest of US$ 85 to the highest of US$ 400. The average sector has returned -8.31% in 1 month and -1.52% within the past week.
Bottom Line:
Tesla’s recent stock dip may essentially be an engaging buying opportunity. Nevertheless, before proceeding with investment actions, prudence and due diligence cannot be overemphasized.
