Tesla
TSLA
Real-time BATS EXCHANGE - 12/13 08:47:00 pm
372.375USD
+1.38%

Increase of volatility

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David Meurisse
Contributor / Partner

Strategy published on : 12/03/2018 | 16:58

long trade
Live

Entry price : 362.79$
Target : 409$
Stop-loss : 337$
Potential : 12.74%

Shares in Tesla have recently benefitted from a regain of interest by market participants. The technical chart pattern suggests a continuation of the upward movement.
Investors have an opportunity to buy the stock and target the $ 409.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is close to a major daily resistance at USD 379.57, which should be gotten rid of so as to gain new appreciation potential.

● The company has insufficient levels of profitability.

● The group shows a rather high level of debt in proportion to its EBITDA.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The group usually releases earnings worse than estimated.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

Zonebourse.com 2018
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