Barclays analyst Dan Levy was the latest institutional expert to revise his position toward Tesla (NASDAQ: TSLA) stock following its impressive third-quarter (Q3) earnings.
Indeed, on Monday, October 26, he replaced his previous ‘Equal Weight’ – ‘Hold’ – rating with ‘Overweight’ – ‘Buy’ – and increased his 12-month price target for TSLA shares from $370 – effectively a 0.60% drop from the latest close at $372.22 – to $450 – a 20.90% upside.
According to the Wall Street expert’s note, the change was motivated by the assessment that the potential merger between SpaceX (NASDAQ: SPCX) and Tesla could bring a premium to the car maker’s equity, but also by various business and technological developments.
Levy cited a ‘sharp inflection in Robotaxi miles driven,’ rising adoption of FSD – the company’s self-driving technology – strong energy growth, and improvements in demand as additional bullish factors.
Analysts revise Tesla (TSLA) stock price for the next 12 months
Meanwhile, Barclays’ optimistic reassessment of Tesla stock was largely in line with the rating revisions the electric vehicle (EV) maker saw following the earnings though, notably, the wider outlook for TSLA remains mixed.
Overall, Wall Street views Elon Musk’s older public company as a ‘Moderate Buy’ with fourteen positive, eleven ‘Hold’, and two ‘Sell’ recommendations, per the data Finbold retrieved from TipRanks on October 26.
The average price target for Tesla stock for the next 12 months is, however, somewhat more optimistic and stands at $414.25 – 11.29% above the latest close.
Additionally, the most recent ratings and forecasts came in as almost universally bullish with new share price estimates generally standing above $400.
This trend is also visible with the analysts who still view TSLA shares as a ‘Hold’, with, for example, JPMorgan’s (NYSE: JPM) Rajat Gupta raising the estimate from $415 to $430 on October 22, and both Jefferies and CLSA opting for exactly $400 on the same day.
Tesla stock price performance
Finally, despite volatility moving the equity in both directions, the recent movements ensured that Tesla stock was, at its latest close at $372.22, 4.13% in the green on the 30-day chart and 4.93% above the October 16 lows.
Still, despite the improving trend, TSLA remains 15.03% down year-to-date (YTD) and 17.73% in the red in the last 12 months.
Featured image via Shutterstock
