Tesla Price Target Raised To $730 From $325 At Bernstein
Bernstein analyst Toni Sacconaghi said he has been grappling with how to think about valuation for Tesla (TSLA) as the stock has tripled over the last 4 months and doubled in the last 3 weeks, like many others.
While Tesla's share price implies that the company will become equal to bigger in size and more profitable than VW (VWAGY) over time, Tesla "is the ultimate 'possibility' stock" and it can be argued that the stock is "not unprecedentedly expensive," said Sacconaghi.
One such precedent for Tesla's meteoric appreciation "is Tesla itself in 2013, and notably, its stock did not collapse falling its huge appreciation," added the analyst, who raised his price target on Tesla shares to $730 from $325 and keeps a Market Perform rating on the stock.
Disclosure: None.