Tesla Inc’s TSLA fourth-quarter results could be “a relative blowout” compared with Wall Street expectations, said Wedbush analyst Daniel Ives Sunday.
The Party Is Just Beginning: Ives based his analysis on robust delivery numbers, which have already been reported along with cost efficiency and tax credit “tailwinds.”
“It appears the EV party is just getting started,” said the analyst pointing to the robust demand in China for such vehicles.
Maintains Tesla Targets: Ives maintained his Neutral rating and $950 price target on Tesla and said that “after a bull run for the ages Tesla's stock could continue to be range bound until the Street gets a better sense of the growth trajectory for Model 3/Model Y unit volumes for 2021.” The Wedbush analyst kept his bull case target of $1,250 intact.
Expect Robust Tech Season: The analyst is bullish on other tech stocks which as well as the earnings season kicks in.
“In our opinion, despite the historic run we have seen in tech stocks over the past year, there is significant room to run higher as the transformational growth stories in cloud, cyber security, and 5G are just starting to play out in the field,” Ives in a separate note. Microsoft Corp. MSFT and Apple Inc. AAPL also report earnings this week.
Firm On Tech in 2021: Despite the gains tech stocks saw last year, Ives gave a “green light” to own tech stocks.
“Our unwavering view is that tech stocks could have another 25%+ upward move in the cards for 2021,” the veteran tech analyst said.
Price Action: Tesla shares closed 0.2% higher at $846.44 on Friday and gained 0.1% in the after-hours session.
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.