BEIJING(Beijing) – Analysts at Argus Research, a market research firm, on Tuesday raised Tesla’s 12-month target price to $556 from $396, meaning there is still about 19 percent room for improvement at current levels. Tesla shares rose nearly 4 percent to $469.06 at The Close on Tuesday. Shares have almost doubled in the past six months and are now worth nearly $84.5bn, about $2bn less than GM and Ford combined.
Bill Selesky, an analyst at Argus Research, said Tesla’s strong fourth-quarter results exceeded market expectations, which was one of the reasons he raised its target price.
The new target price makes Seleskey one of the largest Tesla bulls among analysts tracked by FactSet. But not the biggest, another small company, Elazar Advisors, has given Tesla a target price of $734.
“We are raising our 2020 earnings per share forecast to $5.96 from $4.40 to reflect the scale of the improvement in production and delivery results in 2020 and the higher-than-expected growth in production at our plant in Shanghai, China,” Seleschi said in a note to clients. “
Mr. Seleschi also said he expects Tesla to grow in other areas, such as energy production.