Tesla is a “must-own stock” in the transportation sector, according to a Monday note by Alexander Potter of Piper Jaffray.
Potter increased his price target on Tesla to $423, a more than 25% upside to where shares currently trade.
In addition, Potter said he thinks the Cybertruck is “awesome” and that Tesla could sell more than 200,000 of them per year in the US beginning in 2023.
Watch Tesla trade live on Markets Insider.
Tesla, the electric-vehicle maker run by Elon Musk, is the most “impactful disrupter” in the transportation sector, making it a “must-own stock” according to Alexander Potter, an analyst at Piper Jaffray.
On Monday, Potter increased his Tesla price target to $423, which is more than 25% higher than where shares are currently trading. He maintained his overweight rating on shares of the automaker.
Tesla has always had a solid mission statement, loyal fans, and bold designs, Potter wrote in a Monday note. “But lately Tesla has demonstrated some new skills,” including high-volume manufacturing, impressive operational-expense control, and frugal capital spending, he said.
To capture how those new skills will impact Tesla’s long-term revenue and margin profile, Potter switched to a DCF-based valuation model, …read more
Source:: Businessinsider – Finance