Tesla, Inc. (NASDAQ:TSLA) stock gets an upgrade at Jefferies

Tesla, Inc. (NASDAQ:TSLA) stock gets an upgrade at Jefferies

Tesla (NASDAQ:TSLA) stock gained in today’s pre-market trading session. The stock rose over 5% in today’s trading session at 9:47 AM ET. The Dow Jones Industrial Average surged by over 900 points or 4.2%. Also, the S&P 500 and the Nasdaq Composite gained about 4.1% and 4.0%, respectively. Wall Street recovered as the COVID-19 cases slowed down in the US and Europe.

On April 3, Tesla stock rose 5.6% and closed at $480.01 with a market cap of $88.4 billion. Tesla’s stock price has fallen 6.7% in the trailing five-day period, while it has risen 64.5% in the trailing 12-month period. The stock is trading 50.5% below its 52-week high of $968.99 on February 4, 2020. The stock was also trading 171.2% above its 52-week low of $176.99 on June 3, 2019. On a YTD (year-to-date) basis, the stock has risen by 14.7% as of April 3.

Analysts’ recommendations for Tesla stock

As of Monday, 34 analysts cover Tesla stock. Eight out of the 34 analysts recommend a “buy,” 14 recommend a “hold,” and 12 recommend a “sell.” Analysts have an average target price of $454.57 on Tesla. The target price implies a return of -5.3% based on the closing price of $480.01 on April 3. The consensus target price for the stock has fallen from $504.33 in March–a fall of 9.9%.

Today, Jefferies analyst Philippe Houchois upgraded Tesla stock to “buy” from “hold.” However, the analyst decreased its target price on the stock from $800 to $650. According to a report from TheFly, “Despite reducing Tesla’s estimates, the analyst still sees 2020 revenue growth of 27%. The company’s earnings and free cash flow will be supported by better productivity, stable average selling prices and income from zero-emission vehicle credits.” The report also said, “Tesla is the only legacy-free carmaker and is participating in a positive EV sum-game, contends the analyst. Further, post COVID-19 crises, Houchois expects higher consumer support for energy efficient transport.”

Tesla’s growth projection

Tesla reported sales of $24.6 billion in 2019–a rise of 14.5% YoY (year-over-year) from sales of $21.5 billion in 2018. The company reported an adjusted EPS of $0.20 in 2019 compared to -$1.33 in 2018. Wall Street analysts expected the company to report sales of $24.5 billion and earnings of -$0.45 in 2019.

Wall Street analysts expect Tesla to report sales of $6.0 billion in the first quarter. The figure would mark an increase of 32.6% YoY compared to $4.5 billion in the first quarter of 2019. Also, analysts expect the company to report an adjusted EPS of -$0.16 in the first quarter compared to -$1.77 in the first quarter of 2019. Currently, analysts expect a 17.2% and 34.3% rise in the company’s 2020 and 2021 revenues, respectively. Analysts also expect an adjusted EPS of $3.72 and $11.40 in 2020 and 2021, respectively.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 186.79.

The projected lower bound is: 142.21.

The projected closing price is: 164.50.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 38.4976. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.69. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 12 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 54. This is not a topping or bottoming area. The last signal was a buy 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 36.230 at 516.240. Volume was 100% below average (consolidating) and Bollinger Bands were 3% wider than normal.

Open     High      Low     Close     Volume___
511.200 521.000 497.960 516.240 41,878
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 504.52 647.63 388.35
Volatility: 130 158 94
Volume: 16,150,252 20,774,540 12,354,836

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC is currently 32.9% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 24 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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