Analysts are weighing in on the electric automotive giant Tesla Motors Inc (NASDAQ:TSLA) and software giant Microsoft Corporation (NASDAQ:MSFT), with positive ratings and views.
Tesla Motors Inc
In a research report issued today, Oppenheimer analyst Colin Rusch reiterated an Outperform rating on shares of Tesla Motors, with a price target of $340, after the company announced that it delivered 11,580 vehicles in 3Q:15, compared to its guidance for ~12,000 vehicles.
Rusch noted, “While the shipment numbers amount to a 3.5% difference between guidance and deliveries, the total number of vehicles is relatively small at 420. We believe that can be made up in 4Q:15.” Furthermore, Our 2015 estimate shipments remain the same at 50,577 (guidance of 50K-55K). Our 2015E non-GAAP EPS moves slightly lower, to ($0.16) from ($0.10), as we shift sales to 4Q:15 and expect some drag on GM due to the Model X ramp. The balance of our estimates remain the same.”
“We believe investors will also focus on meeting shipment guidance for the year, launching its stationary storage business, and progress on the Gigafactory and development of the Model 3,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Rusch has a total average return of 17.8% and a 51.4% success rate. Rusch has a 155.1% average return when recommending TSLA, and is ranked #191 out of 3764 analysts.
Out of the 25 analysts polled by TipRanks, 13 rate Tesla Motors stock a Buy, 7 rate the stock a Hold and 5 recommend Sell. With a return potential of 20.7%, the stock’s consensus target price stands at $298.71.
FBR Capital analyst Daniel Ives weighed in today with his views on Microsoft, ahead of the company’s Windows 10 hardware launch event in NYC tomorrow. The analyst reiterated an Outperform rating on the stock, with a price target of $53, which represents a potential upside of 16% from where the stock is currently trading.
Ives wrote, “With the Windows 10 platform central to Nadella’s mobile and cloud vision, we expect the event to be mainly focused on new hardware/ device launches (e.g., Surface Pro 4, Lumia 950 XL, Band 2) to help propel Microsoft’s market and mind share in the consumer segment. For Microsoft (and its investors), especially after ripping the Band-Aid off and writing down the failed Nokia acquisition, the Everest-like challenge for Nadella is trying to gain a foothold in the ever competitive smartphone landscape with Apple and Samsung firmly sitting on the summit.”
Furthermore, “Surface has been modestly successful, and now the goal is for Microsoft to use its momentum and unified, cloud-centric Windows 10 architecture to help drive further consumer demand and ideally start to change the perception of Microsoft as a “rounding error” in the smartphone and tablet landscape. Based on our estimates, we believe that Windows 10 was installed on more than 100 million devices worldwide by the end of September, setting the stage for a transformational cloud transition for Nadella and company.”
According to TipRanks.com, analyst Daniel Ives has a total average return of 3.0% and a 46.8% success rate. Ives has a 1.5% average return when recommending MSFT, and is ranked #1048 out of 3764 analysts.
Out of the 28 analysts polled by TipRanks, 16 rate Microsoft stock a Buy, 9 rate the stock a Hold and 3 recommend a Sell. With a return potential of 10.5%, the stock’s consensus target price stands at $50.36.
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