Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Tesla (NASDAQ:TSLA) and Primo Water Corp (NASDAQ:PRMW).
Tesla (TSLA)
In a report released today, Rajvindra Gill from Needham maintained a Sell rating on Tesla. The company’s shares opened today at $369.09, close to its 52-week high of $389.61.
Gill observed:
“TSLA’s shares jolted yesterday on news that CEO Elon Musk was “considering” taking the company private. Mr. Musk provided an option for existing shareholders to be bought out at $420/share or stay on as private investors. Based on our ownership analysis, the top 10 mutual fund holders own 41% of S/O, and “insiders” account for 25% (Mr. Musk’s 20% stake and Tencent’s 5%). It is possible to envision a scenario whereby the top holders decide to stay on as private investors, as many believe the inherent value is substantially higher compared to today. In that hypothetical scenario, with insiders not selling, Tesla might only need to sell 57.6MM shares (or 34%) or $24BN. While this amount is large, and we do not know details of how it could be financed, it is theoretically possible.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.7% and a 68.4% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.
Tesla has an analyst consensus of Hold, with a price target consensus of $321.89, representing a -12.8% downside. In a report issued on July 30, Goldman Sachs also maintained a Sell rating on the stock with a $195 price target.
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Primo Water Corp (PRMW)
In a report released today, Michael Petusky from Barrington maintained a Buy rating on Primo Water Corp, with a price target of $21. The company’s shares opened today at $18.40, close to its 52-week high of $19.33.
Petusky commented:
“We are maintaining our OUTPERFORM investment rating on PRMW and are increasing our price target to $21 (from $20). We believe that several of Primo’s growth initiatives could drive above-average growth and margin expansion for at least the next three to five years. We arrive at our price target of $21 by attaching a 15x multiple to our 2019 adjusted EBITDA estimate. We assume approximately $175 million in net debt 12 months from now.”
According to TipRanks.com, Petusky is a 4-star analyst with an average return of 16.0% and a 59.8% success rate. Petusky covers the Healthcare sector, focusing on stocks such as Anika Therapeutics Inc, Varian Medical Systems, and Merit Medical Systems.
Primo Water Corp has an analyst consensus of Strong Buy, with a price target consensus of $20.50, representing an 11.4% upside. In a report issued on August 3, B.Riley FBR also reiterated a Buy rating on the stock with a $22 price target.
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