© Reuters.

By Kim Khan

Investing.com – There’s a new Tesla bull on the block on Wall Street, with an analyst boosting his price target to $800 Tuesday, the highest on the sell side at present.

Tesla (NASDAQ:) shares jumped 5.9% in morning trading.

New Street Research analyst Pierre Ferragu, who already has a buy rating on shares, hiked his price target to $800 from $530, noting that key elements of the research firm’s bullish thesis through 2025 have been validated over the past year-and-a-half.

“We stick to our views and expect {{0|Tesla} to sell (2 million to 3 million) cars per year after 2025, at industry leading margins, justifying a market capitalization” of $230 billion to $350 billion, about $1,100 to $1,700 per share, Ferragu said in a note.

“Discounted back to early 2021, we would see that fully priced with a stock in the $640-$960 range,” he added. “On that basis, we increase our target price to $800.”

“The stock will remain volatile, as the spread between bull and bear cases remains wide, and God only knows what the next controversy will be,” Ferragu said.

But expectations for 2020 look low and the company should handily top expectation for free cash flow when it reports results next week, he said.

The low target on Wall Street for Tesla stock remains $200 per share, with the average at nearly $359, according to estimates compiled by Investing.com.

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2020-01-21