Tesla Inc (NASDAQ: TSLA) shares rose Monday after Jefferies boosted its target price on the stock along with a boost in its EBIT and per share earnings estimates in anticipation of revenue and earnings growth next year.
It might not be completely smooth sailing in the short-term for the electric car maker, but third-quarter gross margin levels are "consistent with sustained profitability," and Tesla's average selling prices should stabilize, Houchois said in a Monday note. (See his track record here.)
Jefferies is raising his 2020 EBIT estimate by 24% to $1.16 billion and boosting the EPS estimate for 2020 from $1.81 to $3.04.
"Stabilization in 2019 sets a better foundation for a return to growth in 2020 revenue and earnings," Houchois said. "We value the absence of legacy issues, net growth in revenue and earnings and persistent technology edge from battery to autonomous."
Tesla shares were up 3.34% at $348.39.
Photo courtesy of Tesla.