With the electric carmaker's share price seemingly on autopilot of late, even the company’s bigger Wall Street detractors are grudgingly raising their one-year price targets, with UBS reluctantly joining the pack on Thursday.
Indeed, UBS's Patrick Hummel is the latest Wall Street analyst to throw in the proverbial towel and raise his one-year price target - to $410 from $160 - though Hummel made clear that the stock, in his books, is still a sell.
In a note to clients, Hummel said that while Tesla has the potential to become a profitable original equipment manufacturer, or OEM, he still thinks the shares are over-shooting after more than doubling in the past three months.
Having the biggest long-term opportunity in autonomous vehicles, Tesla justifies a market value “well above” most incumbent OEMs, Hummel said, though risks in execution and U.S. demand following the phaseout of tax credits seem to be getting ignored.
Tesla shares have been in ludicrous mode of late amid a surprise third-quarter profit and strong deliveries for the fourth quarter, while the company’s market capitalization topped $100 billion on Wednesday.
Whether the party continues will likely depend on what the company's fourth-quarter results look like. Tesla is slated to release its quarterly earnings figures next Wednesday. Analysts polled by FactSet are currently expecting the company to report per-share earnings of $1.65 on sales of $7 billion.
Shares of Tesla were down 1.8% at $559.28 in morning trading on Thursday.
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