Baird Taps Tesla Stock as "Fresh Pick" Ahead of Big Announcement

It's been a busy week of Tesla headlines

Feb 28, 2019 at 10:02 AM
facebook X logo linkedin


It's been a busy news cycle for Tesla Inc (NASDAQ:TSLA). Following Tuesday's headline the Securities and Exchange Commission (SEC) asked CEO Elon Musk be held in contempt for his tweets, the head of the electric car concern tweeted yesterday about "Some Tesla news" that will be unveiled at 5 p.m. EST today. And earlier, TSLA stock received some bullish brokerage attention.

Specifically, Baird tapped Tesla as a "fresh pick," saying the expectations for weak first-quarter deliveries are priced into the stock and concerns over Model 3 demand are overblown. The brokerage firm reiterated its "outperform" rating and $465 price target -- a nearly 48% premium to last night's close at $314.74.

Elsewhere, Morgan Stanley analyst Adam Jonas suggested today's big announcement could be in relation to the company's $920 million convertible bond payment, which is due tomorrow, March 1. Jonas also speculated about a potential "Model Y" update or strategic partnership. Whatever the news, the analyst said TSLA stock "may be fundamentally overvalued," but maintained his "equal weight" rating and $238 price target.

Most analysts are skeptical of Tesla stock, with 12 of 21 maintaining a "hold" or worse recommendation. Plus, the average 12-month price target of $332.01 is a 5.5% premium to current trading levels.

Traders have taken a bearish stance toward the security, too. While options traders have initiated long puts at a rapid-fire rate in recent weeks, nearly 25 million TSLA shares are sold short -- accounting for roughly one-fifth of the stock's available float.

Looking at the charts, Tesla shares are down nearly 18% since their early August highs near $387.50, and their 50-day and 200-day moving averages appear on the verge of forming a "death cross." Today, though, TSLA stock is up 1% to trade at $318.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI