Tesla Inc. got a rating upgrade from JMP Securities.
The analysts at JMP hiked their rating on the electric carmaker’s shares to "outperform", citing buying opportunity at the stock’s cheap prices amid the ongoing market response to the coronavirus.
JMP’s new price target on Tesla is $1,060 per share, one of the highest on Wall Street. The target implies a potentially “excessive” earnings multiple according to JMP. However, the analysts also pointed out that investors are still willing to buy unprofitable automakers at lower multiples. Tesla is growing at a compound annual rate of 23%.
According to JMP, Tesla is valued at around 20 times forecasted earnings (based on projections for 2021), compared to around 18.2 times for the S&P 500. The analysts also indicated that Tesla could produce nearly 2 million vehicles a year by 2025.