Tesla (TSLA) has a new price target high from Wall Street after analysts at Piper Sandler gave a fresh outlook on the automaker, raising their price target to $1,200.
In a research report released this weekend, analysts Alexander E. Potter and Winnie Dong said that even though the automaker’s performance over the past 12 months has been very strong, they still see lots of room for growth.
“2020 was a breakout year for TSLA, but in our view, the fireworks aren’t over. Even after a 10x return over the past 12 months, we don’t think investors should be selling this stock.”
To support their new price target, the analysts published a 100-page report titled “The Definitive Guide to Investing in Tesla.” In the report they predict that by the mid-2030s Tesla’s revenue from Full Self-Driving (FSD) will exceed the revenue generated from selling cars.
Those numbers are assumed based on 85% gross margin, with opt-in rates eventually rising to >50%.
The in-depth report even includes reference to the company’s short shorts in the “Branding and the “coolness” factor” section. Even without an official budget for advertising, Piper Sandler says “other brands seem decidedly boring by comparison.”
You can read the full 100-page report here.
Disclaimer: Darryn is long Tesla (TSLA)
h/t: Sawyer Merritt
