Oppenheimer Shares Two Cents on Tesla Inc (TSLA) and Shopify Inc (SHOP) Following 20th Annual Conference


Today, Oppenheimer concluded its 20th Annual Technology, Internet & Communications Conference in Boston. The two-day conference brought together over 100 leading public and private companies in the technology industry.

At the conference, Oppenheimer analyst Colin Rusch had the opportunity to sit down and talk with Tesla Inc (NASDAQ:TSLA) VP of Investor Relations Aaron Chew. Here are key takeaways from their discussion:

  • “With Model 3 ramp progress the key near-term variable for TSLA, the company confirmed that vehicles produced in August will be created on production lines as the company works to lock in its production process. We believe progress on these efforts will be challenging to track, but critical to stock performance.”
  • “TSLA continued to exude confidence in reaching its 25% GM targets on Model 3 production but would not commit to a time frame. We believe the take-rate on options will be a key driver as we believe they carry a higher than average GM profile.”
  • “TSLA indicated that even past flat 2H17 operating expense, the company expected slower growth in operational spending, which implies earnings leverage. We believe demonstration of such earnings leverage would be a significant catalyst to move shares higher.”

Rusch reiterates a Perform rating on Tesla Motors, without suggesting a price target. (To watch Rusch’s price target, click here)

Out of the 17 analysts polled in the past 3 months, 5 rate Tesla stock a Buy, 7 rate the stock a Hold and 5 recommend a Sell. With a downside potential of nearly 12%, the stock’s consensus target price stands at $318.77.

In addition, Oppenheimer analyst Koji Ikeda had the opportunity to host a fireside chat with Russ Jones, CFO of Shopify, at the conference yesterday. Ikeda rates Shopify shares a Perform, without suggesting a price target.

Ikeda wrote, “Management’s tone was upbeat, as discussions revolved around the company’s large TAM opportunity, industry catalysts, upmarket traction, newer products adoption, and other growth opportunities. We believe Shopify’s business momentum is strong, which can be seen in healthy trajectories in key business metrics (MRR, GMV, revenue, billings, etc.). Following the fireside chat, we are increasingly confident that Shopify will continue to exhibit top-tier SaaS revenue growth with improving profit margins in 2H:2017 and 2018.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Koji Ikeda has a yearly average return of 12.2% and a 43% success rate. Ikeda is ranked #2069 out of 4628 analysts.

Out of the 15 analysts polled in the past 12 months, 14 rate Shopify stock a Buy, while 10 rate the stock a Hold. With a potential upside of nearly 11%, the stock’s consensus target price stands at $105.27.

  • Charlie Gilreath

    This is the funniest thing I have seen in the market in 100 years. Analyst talking to the Corp cheerleader and acting as though the information is of value. Followed by a market valuation that is completely pulled out of thin air based upon a short term product leadership that is the equivalent of “a sprinter running to the front of the Boston marathon and everyone betting he will win in the long run”. You do realize when MB, Ford, Porsche etc. offer choices and their full service network – the fact the car has a battery will not be unique any longer and all Tesla majic is diminished. You will look at the car the same way you look at the Delorean in Back to The Future. And Musk he will laugh all the way to the bank. This is the most irrational valuation based on a cult of personality and directly reflects on the millennial generations disconnect from reality.