Shares in this article
?? Three-digit price increase since January
?? CEO Musk points to uncertain share price development
?? Analysts with price targets between $ 90 and $ 780
Despite uncertain future: Goldman Sachs raises price target for Tesla shares to 780 US dollars
The share price of the electric car manufacturer Tesla tends to only know one direction: up. This year alone, the share has already risen by more than 690 percent; the share is currently trading on the NASDAQ at 661.77 US dollars (closing price on December 24, 2020). Nevertheless, there is a certain amount of uncertainty as to the further course of the share price, like even Tesla CEO Elon Musk admits. In May, before the share split carried out on August 31, the company boss said that his company’s share price was set too high.
It was only at the beginning of the month that Musk wrote an internal letter to his employees, advising them of the risk of falling prices if the company failed to live up to investors’ profit expectations.
At the US bank Goldman Sachs, however, these concerns seem to have no place. In early December, analyst Mark Delaney raised the price target for Tesla shares from 455 to 780 US dollars. The expert explains the significant jump with the fact that the change to electric vehicles is taking place faster than previously assumed. The study speaks of a dynamic trend that favors the switch to environmentally friendly transport options.
Morgan Stanley analyst assesses Tesla’s business aspects in a differentiated manner
As “Bloomberg” reports, the problem with the analysis houses when evaluating the company, based in Palo Alto, California, often lies in whether it is an automaker or a technology company. Morgan Stanley analyst Adam Jonas also emphasizes Tesla’s special role: “Tesla is a car manufacturer just like Apple is a telephone manufacturer,” the strategist told the news agency. “When the car is connected to the Internet, it opens up a ton of other addressable markets that were inaccessible to car companies in the past, and even today – like most car companies design their cars – are still inaccessible.” In this way, Tesla proves that not only the analysis of sales figures and vehicle prices should be included in calculating the company’s success, but also aspects such as the software and service offering. Tesla is therefore not so easy to compare with other car manufacturers, but rather has similarities to companies that offer software solutions. “For the energy business [von Tesla] Let’s look at the solar companies, for the auto business, you can look at Apple when it was growing really fast, or the valuation of acquisition purpose companies, and for the service business, we looked at “software-as-a-service” companies. ”
The major bank has calculated the target price for the share at 540 US dollars. “From our course target [
] $ 254 in core automotive, $ 154 in network services, $ 58 in potential to become a third party battery and powertrain supplier, $ 38 in mobility and ride sharing, and $ 25 in Dollars on the insurance and energy business, “said Jonas.
JPMorgan strategist with low price target
Jonas comes to a different assessment? Colleague Ryan Brinkman from competitor JPMorgan: “As far as the future of this company is concerned, I see it primarily as an automobile manufacturer, although it draws a minority of its revenue from additional, potentially faster-growing end markets,” said Brinkman. “From the perspective of the automotive end market, it could possibly approach the size and profitability of a Daimler or BMW in the next decade.” Nevertheless, the electric car manufacturer is still a long way from this point, as the strategist then gives in. “Of course that doesn’t mean that [das Papier] should now be traded at Daimler or BMW multipliers, considering the faster growth and the additional options in the end market. “Therefore, Brinkman is of the opinion that the price increase of the share was not justified – at least not yet.” I think, that this company will get a lot bigger in the future, but it has to grow a lot more to justify the current share price. “Despite his growth forecasts, the JPMorgan analyst believes it is plausible that the share price will initially fall sharply in the future The paper is currently being driven too much by euphoria, which will inevitably lead to volatile price movements.
Accordingly, Brinkman sets his price target for the Tesla bill significantly lower than, for example, Jonas from Morgan Stanley. “We have a target price of 90 US dollars for the stock and that still implies a market value for Tesla that is greater than that of GM,” explains the expert. The target is well below the current share price, but one must consider that General Motors sells 6 million vehicles while Tesla only manages 500,000 units.
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