NEW YORK (TheStreet) -- Tesla Motors (TSLA) stock has rallied 32% in the last three months, and gained three times as much as the S&P 500 Index over the past 12 months. Should you sell? Not yet, according to analysts at Baird in a note projecting more gains for the company.
They raised their price target on the stock to $335 a share, or about 30% upside from Friday's close, from a previous target of $275 a share. They kept a buy rating on Tesla. Shares currently trade at $255.
There's "a string of positive updates" around the corner for the electric-car maker, the analysts, led by Ben Kallo, said in the note. Tesla's shareholder meeting, scheduled for Tuesday at 2 p.m. Pacific Time, is only one of them. The meeting will be webcast live from Mountain View, Calif.
At last year's shareholders meeting, CEO Elon Musk told investors he was planning to remain Tesla CEO for the next four or five years. He also promised fast advances in autonomous driving. Earlier this year Tesla upgraded the Model S software to add more driver-assistance features such as a collision-warning system, and all new Model S cars are equipped with sensors, a radar and a camera in anticipation of more software upgrades.
Investor sentiment on Tesla has improved in the past three months, but there's still skepticism surrounding Tesla Energy, a suite of stationary battery products; the launch of Tesla's SUV, the Model X launch; and overall demand for Tesla's cars and products, the Baird analysts said.
The company is not set to report its second-quarter results until late July. The consensus estimate from analysts polled by Thomson Reuters calls for a net loss per share of 58 cents on $1.15 billion in revenue. In the second quarter of last year, it posted 11 cents in earnings per share on $857.51 million.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
You can view the full analysis from the report here: TSLA Ratings Report