Tesla founder Elon Musk speaks at the unveiling event by “The Boring Company” for the test tunnel of a proposed underground transportation network across Los Angeles County, in Hawthorne, California, December 18, 2018.
Robyn Beck | Pool | Reuters
Here are the biggest calls on Wall Street on Monday:
Jefferies raised its price target on Tesla to $400 from $300
Jefferies raised its price target on the stock and said it sees the company “maintaining its edge in product, affordability and technology.”
“Without assuming it is smooth sailing from here, Q3 reported gross margin levels that are consistent with sustained profitability while ASPs should stabilize ahead of H2 2020 improvements. Stabilization in 2019 sets a better foundation for a return to growth in 2020 revenue and earnings. We continue to see Tesla maintaining its edge in product, affordability and technology.”
Piper Jaffray downgraded Cisco Systems to ‘neutral’ from ‘overweight’
Piper said in its downgrade of Cisco that a slowing macro environment in Cisco’s markets as well as the lack of any near term catalyst for the stock.
“Our downgrade centers on a slowing macro-environment across Enterprise and Service Provider, as well as cycles hitting a peak earlier this year, a lack of a near-term catalyst, and risk to FY20-FY21 estimates. On the positive front, we see downside as fairly limited from here, the software transition producing better FCF, a ~3% dividend yield, and material 2021 catalysts like 5G and 400G switching.”
