Tesla's stock surges after Oppenheimer boosts price target above $600 - MarketWatch

Shares of Tesla Inc. TSLA, +5.35% surged 2.3% in premarket trading Monday, after Oppenheimer analyst Colin Rusch boosted his stock price target by nearly 60% to over $600, saying he believes the electric vehicle maker has reached "critical scale" sufficient to support sustainable positive free cash flow (FCF). Rusch reiterated his outperform rating while raising his price target to $612, which is 28% above Friday's closing price, from $385. Although he expects continued share volatility, he believes Tesla has "key advantages" over its competitors in powertrain design and battery technology, ADAS fleet size, roadmap to energy independence and consumer enthusiasm. "[W]e believe the company's risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace." Rusch wrote in a note to clients. Rusch's new price target is the second highest of the 32 analysts surveyed by FactSet, behind just Elazar Advisors analyst Chaim Seigel's $734 target. The stock, which is on track to open slightly below the Jan. 8 record close of $492.14, has rocketed 93% over the past three months through Friday, while the S&P 500 SPX, +0.27% has gained 9.9%.

Let's block ads! (Why?)