Jefferies ups Tesla target, recommends equity raise post rally

Jefferies analyst Philippe Houchois raised the firm’s price target on Tesla (TSLA) to $300 from $195 and keeps a Hold rating on the shares. The firm says Tesla should take advantage of its shares re-rating 30% since Trump’s election to raise equity. Assuming markets remain competitive, de-regulation raises the company’s growth path but also the investment requirements for Tesla and competitors in ventures where returns remain unclear, the analyst tells investors in a research note. Jefferies increased estimates on a mix of software, zero-emission vehicle credits and storage more than auto. The new price target reflects higher earnings and growth, and a lower discount rate.