Good to see at least 1 analyst has the brass to put out a $420 PT.By Claudia Assis
There will be "limited impact" from competition on Tesla Inc. TSLA, -0.07%electric-vehicle sales as the car maker's brand strength and the gradual availability of cheaper Model 3 sedans undercut rivals, analyst Garrett Nelson at CFRA said in a note Tuesday. CFRA raised its rating on Tesla stock to buy from hold and increased its price target on the stock to $420 to $375. "We expect unit costs to continue to fall, reflecting improved operating efficiencies and fixed cost absorption," Nelson said. "We also view the U.S.-China 'tariff truce' as having positive gross margin implications." Shares of Tesla were flat in midday trading and have gained 15% this year, compared with advances of 1.6% and 1.7% for the S&P 500 index SPX, -2.74%.