TESLA SEEKS MAJOR ROLE IN ENERGY MARKET

Tesla Inc. is set to “attack and conquer” another trillion-dollar market as the company best known for its electric vehicles ramps up its focus on energy generation and storage, according to Canaccord Genuity, Joe Easton and Jan-Patrick Barnert reported for Bloomberg News.

Analyst Jed Dorsheimer upgraded the stock to buy from hold and gave it one of the highest price targets on the Street, predicting the generation and storage unit could yield $8 billion of revenue by 2025.

Tesla “is rapidly creating an Apple-esque ecosystem of energy products, harmonized in electrification, to become The Brand in energy storage,” Dorsheimer said in a note to clients Monday. His $1,071-a-share objective -- up from $419 previously -- suggests almost 60% upside for a stock that’s already gained nearly six-fold in the past year.

The company’s shares traded nearly 2% higher at $690.23 in early morning trading in New York.

Tesla's battery efforts could extend stock's rally, Canaccord says. Dorsheimer’s price target values Tesla’s stock and net debt at 63 times his estimate of the company’s earnings in 2024.

That’s three times the average multiple of a group of competitors, he said. “While rich, we also believe Tesla holds a several-year lead and is now expanding aggressively into storage and thus feel our multiple is warranted,” the analyst wrote.

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