Tesla’s furious rally isn’t over yet with stock poised to rise another 55%, analyst says

Tesla’s furious rally isn’t over yet with stock poised to rise another 55%, analyst says

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Tesla Inc. gained premarket Tuesday, rebounding from Monday’s rare decline, and at least one analyst is telling investors the dizzying rally isn’t over yet.

“Is it time to redeploy capital after an amazing run? Resoundingly, we think the answer is NO,” Piper Sandler analyst Alexander Potter wrote in a note. “In our view, Tesla is the most consequential company in the mobility ecosystem, and this is unlikely to change in the next decade.”

Potter lifted his price target to US$2,322, the highest among the 30 analyst targets tracked by Bloomberg, from US$939, a target he’s held since April. The new price target implies another 55 per cent of upside over the next 12 months.

Tesla gained 4.2 per cent to US$1,560 in premarket trading, setting it up to erase Monday’s 3.1 per cent dip. No stranger to volatility, the stock has been on a relentless rally, more than tripling since the start of the year and advancing 60 per cent in the past month alone. That compares to a 21 per cent gain in the high-flying Nasdaq 100 for the year, or 9.7 per cent in the past month.

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