Tags: morgan stanley | bullish | tesla | stock

Morgan Stanley Bullish on Tesla for First Time Since 2017

Morgan Stanley Bullish on Tesla for First Time Since 2017
(Peter Ksinan/Dreamstime)

Wednesday, 18 November 2020 08:35 AM

Morgan Stanley gave Tesla Inc. an overweight rating for the first time in more than three years, predicting that Elon Musk’s firm is on the verge of a “profound model shift” from selling cars to generating high-margin software and services revenue.

“To only value Tesla on car sales alone ignores the multiple businesses embedded within the company,” analyst Adam Jonas wrote in a note as he upgraded the shares from equal-weight and raised his price target by 50% to $540, suggesting 22% upside for a stock that’s quintupled this year.

Jonas’ valuation now includes Tesla’s network services, energy storage and insurance businesses. The internet-of-cars opportunity is also real, and a prerequisite to unlock further gains for the stock, the analyst wrote.

Tesla shares (TSLA) extended their surge on Wednesday, rising 2.7% in premarket trading to $453.56. The stock jumped 8.2% Tuesday after it was selected for admission to the S&P 500 Index.

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Morgan Stanley gave Tesla Inc. an overweight rating for the first time in more than three years, predicting that Elon Musk's firm is on the verge of a "profound model shift" from selling cars to generating high-margin software and services revenue.
morgan stanley, bullish, tesla, stock
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2020-35-18
Wednesday, 18 November 2020 08:35 AM
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