Analysts talk Tesla

|By:, SA News Editor

Morgan Stanley analyst Adam Jonas expects Tesla (TSLA +2.2%) to issue a $2.5B equity raise in Q3. "Investors with whom we spoke positively interpreted the company's commentary around ‘high volume, good gross margin and strong positive operating cash flow’ in Q3, although [they] were somewhat skeptical that the company would actually realize these goals or avoid an equity or debt raise," writes Jonas. he rates Tesla at Equal-weight with a price target of $379.

JPMorgan reminds that Tesla also stated in 2016 that it wouldn't issue equity before firing off a multi-billion dollar raise. The JP price target goes to $185 from $190.

Evercore warns Tesla faces a "significant" risk from China tariffs due to the impact on pricing. The firm lowers its price target to $272.

Cowen sticks with bearish view on Tesla on concerns over the company's creditability in the financial community and expected equity raises in 2018 and 2019.

Consumer Edge backs its Overweight rating on Tesla by noting that the assembly line investments shouldn't be dismissed. "They're doing something that is incredibly difficult: building the machine that makes the machine — one of the most automated assembly lines in the history of the global auto industry," writes analyst James Albertine.

Oppenheimer keeps it simple."We have a great deal of skepticism about the targets that they put out," sums up analyst Colin Rusch.

The average price target on Tesla from major investments firms is now $325 (+19% upside).

Sources: CNBC, Benzinga, Bloomberg

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