Tesla will surge another 24% over the next year as it grows to $100 billion in revenue by 2025, says new biggest bull on Wall Street
- JMP Securities on Monday boosted its Tesla price target to $1,500, the most bullish target on Wall Street.
- Shares of Tesla surged as much as 11%, to an all-time high of $1,342.
- The target price is based on a trajectory of Tesla becoming a company with $100 billion in revenue by 2025. It's 24% higher than where shares of Tesla traded at Thursday's close.
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Tesla's epic rally continues to gain steam.
The automaker on Monday surged as much as 11%, to an all-time intraday high of $1,342 per share, after Joe Osha, an analyst at JMP Securities, boosted his price target to a Wall Street high of $1,500. That implies that Tesla could surge another 24% this year.
The bullish upgrade from JMP came after Tesla reported second-quarter deliveries that exceeded analysts' expectations: The company reported 90,650 deliveries, while the average estimate was about 70,300.
"If the company can manage 90K units during an extraordinarily challenging quarter, there is no reason that TSLA cannot be shipping 130K to 140K units a quarter by the end of the year in our opinion," Osha said, adding, "That puts TLSA on a trajectory to ship 757K units in 2021."
Osha sees Tesla's growth continuing and forecast that the company would reach $100 billion in revenue in 2025, deliver 2.5 million vehicles, and have an EBITDA margin of 20%. Osha reaffirmed his "market outperform" rating on shares of Tesla.
"We believe that TSLA is a category killer that is still early in the process of building a dominant position in electric vehicles, and the stock needs to be valued in comparison to other similarly successful companies," Osha said.
Other analysts also noted the delivery beat and upgraded their price targets accordingly. JPMorgan's Ryan Brinkman — formerly one of the most bearish Tesla analysts on Wall Street — upgraded his price target to $295 from $275 on Sunday and reaffirmed his "underweight" rating. Emmanuel Rosner of Deutsche Bank also boosted his price target to $1,000 from $900 and maintained his "hold" rating on shares.
Shares of Tesla have gained more than 200% year-to-date.
