Piper Sandler Maintains Tesla as Top Buy-and-Hold Idea Amid Market Fluctuations
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Piper Sandler continues to maintain Tesla (TSLA) as its '#1 buy-and-hold idea' despite the recent fluctuations in the stock price. Analyst Alexander Potter has kept a buy rating on Tesla, setting a target price of $310. This recommendation is based on several factors, including Tesla's expected delivery growth and market performance.In 2024, Tesla's stock experienced a significant downturn, trailing the S&P 500 by a considerable margin. However, Piper Sandler remains optimistic about Tesla's future prospects. The analyst predicts that Tesla's deliveries in 2025 will reach approximately 1.9 million units, indicating an 8% year-over-year growth. This growth forecast is a key reason behind Piper Sandler's bullish stance on Tesla.Despite the current market cap of $1.5 trillion and a high P/E ratio of 200, which might suggest potential underperformance, Piper Sandler's analysis focuses on Tesla's ability to sustain growth and maintain its market position. The firm's overweight recommendation and buy rating reflect confidence in Tesla's long-term strategy and execution capabilities.In summary, Piper Sandler's continued support for Tesla as its top buy-and-hold idea is driven by expectations of robust delivery growth and confidence in Tesla's market strategy, despite the stock's recent performance challenges.