Tesla (TSLA) has its fair share of bulls and bears on Wall Street. Canaccord Genuity can be added to the list of bulls after giving the automaker a new price target, but not because of their battery electric vehicles (BEVs).
Canaccord Genuity analyst Jed Dorsheimer upgraded TSLA on Monday to “buy” from “hold”. Along with the new rating, he also increased his price target more than 150% from $419 to $1,071 per share.
While most analysts focus on the automotive side of Tesla’s business, Dorsheimer’s new outlook focusses more on their Energy division.
“Tesla’s focus on first-principle engineering we believe will radically change the battery market, enabling the company to further the lead in BEVs and expand into solar and home energy markets with its Powerwall products,” he wrote in a note to clients on Monday.
His optimism extends from battery storage to their solar products. He is expecting Tesla to aggressively ramp up and focus on the Energy division, growing it to $8 billion in revenue with 25%+ gross margin by 2025.
TSLA is currently up 4% on Monday, trading at $701 per share at the time of publication.
Disclaimer: Mike is a TSLA shareholder and has no plans to change positions within 72 hours.