Market Overview

Tesla Has 'Apple-Like Consumer Brand' Potential, Wedbush Says In Bullish Initiation

Share:
Tesla Has 'Apple-Like Consumer Brand' Potential, Wedbush Says In Bullish Initiation
Related TSLA
Raymond James Bullish On Iridium As Satellite Maker Shifts From SpaceX To Sales
Benzinga's Bulls & Bears Of The Week: Delta Air, McDonald's, Netflix, Nokia, Tesla And More
Why Tesla Will Continue To Lead EV Sales For The Foreseeable Future (Seeking Alpha)

After a tumultuous three-month stretch from August through October, Tesla, Inc. (NASDAQ: TSLA) has once again found its stride, trading back near all-time highs. On Friday, one Wall Street analyst said Tesla’s third-quarter momentum should continue in 2019 — and the worst of Tesla’s Model 3 production difficulties are now in the rear-view mirror.

The Analyst

Wedbush analyst Daniel Ives initiated coverage of Tesla with an Outperform rating and $440 price target.

The Thesis

Tesla is one of the most dynamic and innovative companies seen in the past 30 years, joining the ranks of companies like Apple, Inc. (NASDAQ: AAPL) and Amazon.com, Inc. (NASDAQ: AMZN), Ives said in the Thursday initiation note. (See his track record here.) 

Tesla's innovation is clear, but the $1-million question is how to value the stock, the analyst said. 

“From a potential capital raise on the horizon, laser-focused Model 3 production metrics and profitability trajectory, lingering SEC/DOJ overhang stemming from Musk’s 'going private' tweetstorm, to China TAM and the investments needed to get there, are just a few of the main debatable investor topics around Tesla over the next 12 to 18 months."

Investors should expect the bumpy road to continue for Tesla stock in the near-term, Ives said. Yet Tesla is poised to significantly ramp up Model 3 production and free cash flow in 2019, he said. 

In the long-term, Ives said Tesla has the opportunity to grow into a consumer brand similar to the Apple ecosystem.

Price Action

Tesla stock was down 0.79 percent at $373.83 at the time of publication Friday and is up 10.4 percent overall in the past year.

Related Links:

12 Hilarious Wall Street Twitter Accounts

What 5 Of The World's Most Successful CEOs Accomplish Before 8 AM

Photo courtesy of Tesla. 

Latest Ratings for TSLA

DateFirmActionFromTo
Jan 2019RBC CapitalMaintainsSector PerformSector Perform
Dec 2018WedbushInitiates Coverage OnOutperform
Dec 2018BairdReiteratesOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Daniel Ives WedbushAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AITKeyBancUpgrades0.0
MDCitigroupUpgrades0.0
PUMPBarclaysUpgrades20.0
ECPGOppenheimerUpgrades37.0
RACEBernsteinUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Adobe's Q4 Earnings Report: The Street Reacts

Mid-Morning Market Update: Markets Open Lower; LVMH To Buy Belmond For $25/Share