Market Overview

What 2 Street Firms Think About Tesla's Big Announcement


Tesla Motors Inc (NASDAQ: TSLA) on Thursday is expected to announce stationary storage products for businesses and homes. In two notes Monday morning, Deutsche Bank and Credit Suisse analysts said this announcement could have a material impact to Tesla's bottom line. And investors agree, pushing the stock more than 6.5 percent higher Monday to trade recently at $232.71, its highest level since December 2014.

At Deutsche Bank, the analysts said Tesla's home, utility grid-sized stationary storage products could be huge, potentially adding $5 to 2020 EPS. While the overall "opportunity is clear," Deutsche Bank said that the potential could be "more significant than the Street currently expects." Additionally, the business will provide Tesla with a cushion if its automotive growth – which Deutsche Bank said was still the "core" of Tesla's investment thesis – slows.

Credit Suisse analysts argued that Tesla has expanded its addressable market by 75 percent and the core business has a backlog that is "very solid." Specific to storage, the analysts pegged the business as adding $35 to $40 per share today. Significantly, Credit Suisse said that Tesla's stationary storage is "further evolved than we had thought" and that it de-risks investments in the Gigafactory. The "value of this business can be material."

Tesla was trading near the middle of its 52-week range of $177.22 to $291.42. Credit Suisse said that Tesla should trade back towards its highs, placing a price target of $290 on the shares. At Deutsche Bank, the analysts slapped a $245 price target, though it could move higher in the wake of Tesla's announcement.

Latest Ratings for TSLA

Jan 2020DowngradesEqual-WeightUnderweight
Jan 2020MaintainsBuy
Jan 2020MaintainsOutperform

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Posted-In: Credit Suisse Deutsche Bank tesla motorsAnalyst Color Analyst Ratings Movers Tech


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RPAYCantor FitzgeraldMaintains18.0
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