Merrill Lynch upgrades Tesla rating and more than doubles price target

Tesla stock market

As Tesla (TSLA) share prices continue to soar, Bank of America’s Merrill Lynch is seeing the light and has upgraded the automaker from “sell” to “hold”.

In a note to investors, Merrill Lynch analyst John Murphy said Tesla’s unlimited access to low-cost capital should “accelerate its revenue growth rate to 50% annually over the next five years“. (via Yahoo Finance)

Along with the hold rating, Murphy also more than doubled his price target from $800 to $1,750, just $100 shy of Tesla’s closing price on Friday.

Despite the positive short-term outlook for Tesla, Murphy says he still remains “skeptical that Tesla (TSLA) will be the dominant EV automaker in the long-run”.

The move by Merrill Lynch follows Morgan Stanley’s last week, which upgraded Tesla from “underweight” to “equal-weight”, and increased their price target from $1,050 to $1.360.

Tesla shares August 14 2020

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