Schaeffer's Trading Floor Blog

Analyst Upgrades: Tesla Motors Inc (TSLA), Salesforce.com, inc., and SolarCity Corp

Analysts upwardly revised their ratings on TSLA, CRM, and SCTY

by 2/25/2014 9:01 AM
Stocks quoted in this article:

Analysts are weighing in today on electric car maker Tesla Motors Inc (NASDAQ:TSLA), cloud computing concern Salesforce.com, inc. (NYSE:CRM), and alternative energy issue SolarCity Corp (NASDAQ:SCTY). Here's a quick roundup of today's bullish brokerage notes.

  • TSLA is poised to extend yesterday's quest for record highs, with the shares pointed 6.4% higher in pre-market trading. Bolstering the stock is a bullish brokerage note from Morgan Stanley, which more than doubled its TSLA price target to $320 from $153, and reiterated its "overweight" rating. Despite outperforming the broader S&P 500 Index (SPX) by more than 75 percentage points during the past three months, Tesla Motors Inc boasts just six "buy" or better endorsements, compared to six "hold" or worse ratings. Should the equity extend its climb -- or should CEO Elon Musk's looming "gigafactory" announcement wow the Street -- more upbeat analyst attention could be in store. After topping out at $218.36 in intraday trading Monday, TSLA finished at $217.65.

  • Oppenheimer raised its price target on CRM by $11 to $71, and underscored its "outperform" recommendation. Ahead of the firm's turn in the earnings spotlight after the close on Thursday, most analysts are optimistic. CRM -- which ended at an all-time closing high of $63.91 yesterday -- harbors 20 "strong buys" and two "buy" ratings, compared to three "holds" and just one "strong sell." However, short interest accounts for 47.6 million Salesforce.com, inc. shares, and would take nearly two weeks to buy back, at CRM's average pace of trading. A stronger-than-expected earnings report could spark a short-squeeze situation.

  • SCTY is pointed modestly lower ahead of the bell, after the company last night delayed its complete fourth-quarter earnings report, and said it expects to install fewer panels in the colder-than-usual first quarter. SolarCity Corp did, however, announce that quarterly revenue soared a bigger-than-anticipated 87%. It seems J.P. Morgan Securities is taking the glass-half-full approach, hiking its price target on SCTY to $72 from $68. The stock -- which finished at $78.55 yesterday -- has outpaced the SPX by nearly 70 percentage points during the last 60 sessions, which could be why short-term options speculators are more call-heavy than usual. The security's Schaeffer's put/call open interest ratio (SOIR) of 0.67 stands just 5 percentage points from an annual low.

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