Tesla Inc (NASDAQ:TSLA) gets a cautious vote of optimism from RBC Capital, who sees opportunity for the electric car giant to fill its valuation shoes down the road while revving its profit margins past the likes of both Ferrari and Porsche. For now, the analyst views Tesla from a neutral viewpoint, as the ramp for Model 3 is not without preliminary challenges, but the EBIT potential is certainly there.

Meanwhile, Facebook Inc (NASDAQ:FB) receives a bullish note from Cantor from an analyst who predicts the next successful phase of growth for the social media titan boils down to the rise of video. Not only is Cantor confident on Mark Zuckerberg’s brainchild, but the analyst praises the titan as a perpetual “top pick,” reigning in worldwide engagement. Let’s dive in:

Not Yet, But Tesla Earnings Could Knock Out Both Ferarri and Porsche

RBC Capital analyst Joseph Spak may be sidelined on Tesla, but he is certainly eyeing the bullish case, believing that the electric car giant has room to spread its wings on the EBIT runway. Still cautious on operating expenses for the time being, the analyst reiterates a Market Perform rating on shares of TSLA with a $314 price target, which represents a just under 2% downside from where the stock is currently trading. However, Spak has made it clear his neutral perspective is tinged with optimism, arguing that Wall Street is underestimating the giant’s earnings margins potential; particularly should CEO Elon Musk’s new plans for a better hardware update for Autopilot, deemed Enhanced Autopilot achieve real revenue momentum.

“We believe Model S/X gross margins are mid-to-high 20s […] Management indicated there is still runway for improvement and 30% is still a good target driven by cost. Model 3 will initially be tough given lack of absorption (no surprise but sounds like they may help quantify inefficiencies as they occur) […] On opex, R&D is the biggest variable which will be lumpy especially ahead of big launches. […] we believe the level of investment spending at Tesla for whatever is next will be higher. Management indicated 95% of opex not related to S/X which if true means unit EBIT margins could be mid-20%, or better than Ferrari and Porsche. We believe this aspect may be underappreciated by the Street…” opines the analyst.

Overall, Spak concludes, “On stock, we believe timelines may prove aggressive but don’t doubt progress will occur which may be enough. 5k/week at some point in 2018 likely and TSLA should be FCF positive at that level. Bulls likely to view that as validation of the valuation.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Joseph Spak is ranked #321 out of 4,573 analysts. Spak has a 65% success rate and realizes 9.4% in his yearly returns. When recommending TSLA, Spak earns 0.0% in average profits on the stock.

TipRanks analytics show TSLA as a Hold. Out of 18 analysts polled by TipRanks in the last 3 months, 5 are bullish on Tesla stock, 7 remain sidelined, and 6 are bearish on the stock. With a loss potential of nearly 14%, the stock’s consensus target price stands at $272.57.

Facebook’s Fate Looking Good Thanks to the Rise of Video

Facebook may have ridden a wave of mobile success, but Cantor analyst Kip Paulson is looking to the future; and the future of this social media titan, the analyst says, lies in the ascendance of video as the predominant platform. As such, the analyst reiterates an Overweight rating on FB with a price target of $180, which represents a close to 19% increase from current levels.

Paulson explains, “Although FB’s growth in recent years has been propelled by highly successful News Feed ads amid the secular shift to mobile, we believe the next stage of growth will be from the rapid rise of ad-supported digital video. FB launched video ads in 4Q13, but recent developments point to much-larger video aspirations. We believe FB is rapidly evolving into a video distribution platform and an even-more important partner for brands, which could offset any ad load constraints beginning in mid-2017. FB remains a top pick of ours given its unmatched global scale/engagement, industryleading EBITDA margins, and upside optionality from Instagram, Messenger, WhatsApp, and Oculus over time.”

With longer-form content under way, the analyst pinpoints these coupled with mid-roll video adds as the upcoming key near-term growth catalysts, noting that this content has already lifted the titan’s price per ad 14% year-over-year during the first quarter of the year. Moreover, considering that Mark Zuckerberg’s Video app just launched a few months ago, taking a stab at a roughly $70 billion market, the analyst contends, “Although we believe cracking the code on the largest screen in the house will be challenging, FB is making a multi-screen push for video ad dollars.”

According to TipRanks, three-star analyst Kip Paulson is ranked #1,370 out of 4,573 analysts. Paulson has a 76% success rate and garners 11.0% in his yearly returns. When recommending FB, Paulson gains 14.9% in average profits on the stock.

TipRanks analytics indicate FB as a Strong Buy. Based on 33 analysts polled by TipRanks in the last 3 months, 32 rate a Buy on Facebook stock while 1 maintains a Hold. The 12-month average price target stands at $172.45, marking a 13% upside from where the stock is currently trading.