Update (9:40 a.m.): Updated with Monday market open information.
NEW YORK (TheStreet) -- J.P. Morgan increased its target price on Tesla
(TSLA - Get Report) to $164, increased its estimates and set a "neutral" rating. The firm noted the Gigafactory should help cut battery costs.
The stock was falling 1.83% to $240.32 shortly after the market opened on Monday.
- TSLA's very impressive revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues leaped by 100.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, TSLA has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Automobiles industry and the overall market, TESLA MOTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TESLA MOTORS INC is currently lower than what is desirable, coming in at 31.56%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TSLA's net profit margin of -2.64% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: TSLA Ratings Report