Nomura is Bullish on Tesla Stock

by | Oct 5, 2017

Analysts from Japanese financial holdings company Nomura are more bullish on Elon Musk’s Tesla than any other firm out of the 19 research shops that cover the company, according to data from FactSet.

Nomura Instinet have set a 12-month price target of $500 for Tesla stock, which would represent a $145 boost to the price from its current level of $355 – a %44 upside. 

In a note to clients of the firm on Tuesday, Nomura’s Romit Shah said, “Tesla is vertically integrated, owning both the manufacturing and much of the supply chain, similar to Intel when it scaled revenues from $4bn to $34bn during the 1990’s PC era.”

The analyst believes Tesla sales will rise to nearly $60 billion in 2021. However, this figure will be widely debated by others who are bearish on the stock. Though the firms shares have been some of the best performing on Wall Street this year, some investors are concerned with Tesla’s ability to fulfil its goals, after production of the ‘Model 3’ (its first car designed for the mass market) stuttered, with only 260 vehicles produced in Q3 this year.

Jefferies analyst Philippe Houchois set a price target of $280 for Tesla in September, citing the company wouldn’t make a profit until 2020. The firm was also concerned as to whether Tesla could hit a long-term gross margin target of 30%. The stock is considered to be overpriced by many, but its long term potential is still frankly unknown.

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ALL RIGHTS RESERVED © INVSTR LTD. 2017

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order. Brokerage services, including fractional trading of US securities, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here. Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

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