Tesla Inc (TSLA: NSD) has been facing a barrage of challenges recently that are weighing on its stock price. Despite these headwinds, Deutsche Bank is taking a significantly different stance on Tesla, advising investors to focus on the long-term appeal of the company, rather than getting ensnared by the present trials.
Deutsche Bank’s Tesla Stock Analysis:
Deutsche Bank’s analysts accept the concerns about demand, pricing, and earnings that have been impacting the TSLA stock price recently. Furthermore, they imply that these challenges could possibly dampen Tesla’s earnings expectations for 2025. However, they remain optimistic due to the fundamental industry-changing role Tesla plays in the EV space. Leveraging its pioneering status and forward-looking measures like price adjustments and cost-cutting, the bank shows confidence in Tesla’s ability to ride out the current storm.
Stock Target Advisor’s View on Tesla Stock:
Stock Target Advisor endorse Deutsche Bank’s long-term view, recommending a Buy rating on the TSLA stock, with a target price of $266.13. This represents a projected price change of 62.7% over the next 12 months, substantially higher than the average analyst target price of $250.89 for Tesla.
Despite the stock confronting a notable fall in 2024, with its current price standing at $163.57, STA identified some affluent positive signals. These include superior risk-adjusted returns, positive cash flow, free cash flow and a superior return on assets/equity/invested capital. However, STA also highlights areas of caution, namely overpricing relative to book value and earnings, and high volatility on total returns.
Amidst the lingering concerns surrounding Tesla, analysts continue to maintain a positive stance, with an average Buy rating and average target analysts price of $250.89. Opinions vary, however, with the maximum average target price pegged at $400 and the minimum average at $85.
It is worth noting that Tesla sits alongside major players like Li Auto, Rivian Automotive, and Lucid Group in the Auto Manufacturers sector of the NSD, which itself also carries an average Buy rating.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
