MLV Initiates Buy On Tesla, Sees 27% Upside For The Stock
In a research report released MLV analyst Carter Driscoll initiated coverage on shares of Tesla Motors (NASDAQ:TSLA) with a Buy rating and a $300 price target, which represents a 27% upside from where the stock is currently trading.
Driscoll wrote, “After today’s market close, Daimler (DAI.XE-Not Rated))announced it was selling its ~4% equity position in TSLA, which we do not believe signals a change in the relationship. We believe Daimler’s divestment was to realize its substantial gain on its original investment and not a fundamental change in the two companies’ business relationship. The two companies have a long history of collaboration. In fact, Daimler went out of its way to highlight that TSLA will continue to supply full electric power train systems for Daimler’s B-class Electric Drive (ED). In 2Q14, TSLA began production deliveries of these power train systems for the B-class ED after recently competing development work. We expect deliveries to pick up as Daimler is expected to introduce the vehicle in Europe in 4Q14.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Carter Driscoll has a total average return of 0.7% and a 50% success rate. Driscoll has a 4.5% average return when recommending TSLA, and is ranked #2072 out of 3354 analysts.