Global Equities Research Bumps Tesla Motors Stock to Highest Rating of Overweight
JUN 26 2013 BY ERIC LOVEDAY
Overweight here is certainly a positive.
Global Equities Research analyst, Trip Chowdhry, bumped Tesla Motors’ stock (NASDAQ: TSLA) to Overweight status and then set a 12- to 18-month price target at $150 per share.
What’s Overweight mean? Here’s the simplest of definitions:
“Overweight as part of a three-tiered rating system, along with “underweight” and “equal weight”, is used by financial analysts to indicate a particular stock’s attractiveness. If a stock is recommended to be “overweight”, the analyst opines that the stock is a better value for money than others.” (Source: Wikipedia)
The Global Equities Research report says this in regards to Tesla:
“We are initiating coverage on Tesla Motors (TSLA) with an overweight rating and with a 12 – 18 months Price Target of $150. Tesla is creating a completely new $100 Billion Industry, which we at Global Equities Research call ‘Transport-as-a-Service’ (TaaS). Tesla has Mobility Vehicles, Software & Applications, Tesla Cloud, PowerGrid and futuristic Hyperloop, which we think may help Tesla capture about 60% of this TaaS Industry, which spans Anything and Everything between Bicycles and Hyperloop. Our 12 – 18 month price target of $150 on Tesla is based PE multiple of 2500x FY2013 estimates of $0.06, and on a PE multiple of 163x FY2014 estimates of $0.92.”
After a string of successes and announcements, Tesla stock shot past $100 and has remained there; it closed Tuesday June 25th, 2013 at $102.40. Interesting here though is this “Transport-as-a-Service” mention, which we’d never heard of before, but somehow Global Equities Research puts Tesla in control of the majority of this industry. Hmm…is Tesla really that much more than just an automaker?