Credit Suisse analysts weighed in on electric car giant Tesla Motors Inc (NASDAQ:TSLA) and sportswear giant Nike Inc (NYSE:NKE). The analysts provide some quick thoughts on Tesla’s weaker-than-expected Q1 deliveries, and Nike’s online services execution. Let’s take a closer look.
Tesla Motors Inc
Credit Suisse analyst Dan Galves reiterated an Outperform rating on shares of Tesla, while raising the price target to $280 (from $240), on increased confidence in long-term demand. However, the report comes after the company reported weaker-than-expected Q1 deliveries of 14,820, which falls short of the 16,000 guidance.
Galves wrote, “Continued Model S order growth and spectacular interest in Model 3 support our view that demand will continue to outpace production through the fcst period. This puts Tesla in an enviable position, but significant growth in the shares from here will likely require evidence of earnings improvement and cash burn reduction. In our view, now that Model X production is on-plan, everything is in place for that to happen. We expect some evidence of improvement in Q2, but much more meaningfully in the back-half as overall production increases and Model X inefficiencies diminish.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dan Galves has a yearly average return of 13.8% and a 63% success rate. Galves has a 22% average return when recommending TSLA, and is ranked #365 out of 3842 analysts.
Credit Suisse’s Christian Buss took the same route, reiterating an Outperform rating on shares of Nike, with a price target of $68, as his test showed that Nike is outperforming competitors in the execution of online services, with ordering, processing, shipping, and delivery leading multi-brand competitors.
Buss noted, “Our proprietary test of processing and delivery times for orders across Nike, Foot Locker, and Finish Line’s eCommerce sites give us greater conviction that Nike will be successful in taking share as growth priorities shift to direct to consumer operations. Our test shows that Nike now has the industry’s best execution capabilities. Nike scored the best across all of our eCommerce metrics while Foot Locker and Finish Line lagged significantly, leaving us cautious on their ability to remain competitive.”
According to TipRanks.com, analyst Christian Buss has a yearly average return of 5.6% and a 59% success rate. Buss has a 26% average return when recommending NKE, and is ranked #720 out of 3777 analysts.Out of the 26 analysts polled by TipRanks, 23 are bullish on Nike stock, while 3 are neutral. With a return potential of 20%, the stock’s consensus target price stands at $71.84.