Morgan Stanley turns bullish on Tesla for first time since 2017
1 min read . Updated: 18 Nov 2020, 02:09 PM IST- Tesla shares extended their surge on Tuesday, rising 8.2% to $441.61 after the stock was selected for admission to the S&P 500 Index.
Morgan Stanley gave Tesla Inc. an overweight rating for the first time in more than three years, predicting that Elon Musk’s firm is on the verge of a “profound model shift" from selling cars to generating high-margin software and services revenue.
“To only value Tesla on car sales alone ignores the multiple businesses embedded within the company," analyst Adam Jonas wrote in a note as he upgraded the shares from equal-weight and raised his price target by 50% to $540, suggesting 22% upside for a stock that’s quintupled this year.
(Also read | Tesla surges as fund managers face big decision: How much to own)
Jonas’s valuation now includes Tesla’s network services, energy storage and insurance businesses. The internet-of-cars opportunity is also real, and a prerequisite to unlock further gains for the stock, the analyst wrote.
Tesla shares extended their surge on Tuesday, rising 8.2% to $441.61 after the stock was selected for admission to the S&P 500 Index.
This story has been published from a wire agency feed without modifications to the text.