- Morgan Stanley (NYSE:MS) analyst Adam Jonas expects Tesla (TSLA +2.2%) to issue a $2.5B equity raise in Q3. "Investors with whom we spoke positively interpreted the company's commentary around ‘high volume, good gross margin and strong positive operating cash flow’ in Q3, although [they] were somewhat skeptical that the company would actually realize these goals or avoid an equity or debt raise," writes Jonas. he rates Tesla at Equal-weight with a price target of $379.
- JPMorgan (NYSE:JPM) reminds that Tesla also stated in 2016 that it wouldn't issue equity before firing off a multi-billion dollar raise. The JP price target goes to $185 from $190.
- Evercore warns Tesla faces a "significant" risk from China tariffs due to the impact on pricing. The firm lowers its price target to $272.
- Cowen sticks with bearish view on Tesla on concerns over the company's creditability in the financial community and expected equity raises in 2018 and 2019.
- Consumer Edge backs its Overweight rating on Tesla by noting that the assembly line investments shouldn't be dismissed. "They're doing something that is incredibly difficult: building the machine that makes the machine — one of the most automated assembly lines in the history of the global auto industry," writes analyst James Albertine.
- Oppenheimer keeps it simple."We have a great deal of skepticism about the targets that they put out," sums up analyst Colin Rusch.
- The average price target on Tesla from major investments firms is now $325 (+19% upside).
- Sources: CNBC, Benzinga, Bloomberg
- Now read: Tesla: Why Did Short Interest Decline?
Original article