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A superannuation industry body has called on the government to grant a one-off investment handout to those most affected by the COVID-19 recession.

The Australian Institute of Superannuation Trustees (AIST) has proposed to Treasury that a payment of up to $5,000 should be considered for Australians who withdrew their super early this year due to financial hardship.

The 3 million distressed Australians who had accessed their super early were already behind in their retirement savings, according to the group.

“Before making a withdrawal, members that made an early release application had on average 20% less than their peers that didn’t make an early release application,” stated AIST’s federal budget submission.

“This indicates that they were more likely to be working in lower paid, less secure jobs than their age group peers.”

Closing the gap

To close this widening “gap”, AIST suggested the government could provide a one-off handout directly into the superannuation accounts of those who withdrew early.

“This contribution would be set at a quarter of the value of the super the member accessed and be capped at a maximum $5,000 contribution for those who accessed the full $20,000.”

The handout could then be invested into shares through their superannuation accounts, or any other option that the fund provides.

The government earlier this year relaxed the financial hardship rules to allow early withdrawal of superannuation, to assist Australians impacted by the coronavirus downturn.

Australians then took to this enthusiastically, making 4 million early withdrawals so far, according to the Australian Prudential Regulation Authority.

Poverty now vs poverty later

But super experts are worried these people have taken a substantial hit to their retirement savings.

“The early access to super scheme has forced many Australians to choose between poverty now or poverty in retirement,” stated AIST.

“Rather than requiring those who can least afford it to compound their financial insecurity, the government could have borrowed at interest rates close to zero to support more Australians. Instead individuals were forced to access their super and forgo returns of at least 5 to 7% in annual interest over the long term.”

Other recommendations include:

• Increasing the government co-contribution rate and threshold
• The removal of the $450 monthly wage minimum for mandatory superannuation

AIST represents 50 profit-to-member superannuation funds that collectively hold $1.5 trillion of retirement investments.

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• Hub24 share price tumbles despite a big profit and dividend increase

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Western Areas Ltd (ASX: WSA) share price is pushing higher on Tuesday following the release of its full year results.

At the time of writing the nickel producer’s shares are up 2% to $2.48.

How did Western Areas perform in FY 2020?

For the 12 months ended 30 June 2020, Western Areas delivered a 14.8% increase in sales revenue to $308.4 million.

This was driven by a 20% increase in the average realised price of nickel (before payability) to $9.42 per pound, which offset a small decline in production to 20.9kt and sales to 19.9kt.

Thanks to a big improvement in its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 38%, Western Areas’ EBITDA increased 50.9% to $121.9 million.

And finally, on the bottom line, the company’s net profit after tax jumped 124% to $31.9 million. This was its biggest profit in seven years.

At the end of the period the company had a very strong balance sheet with a cash balance of $144.8 million and no debt.

This allowed the company to declare a fully franked final dividend of 1 cent per share, bringing its full year dividend to 2 cents per share. This was flat on the prior corresponding period despite the strong profit growth. Management appears intent to reinvest its funds into growth opportunities.

Well-positioned for growth.

Western Areas’s Managing Director, Dan Lougher, was pleased with FY 2020 and appears confident on the future.

He commented: “Thanks to the very strong financial performance we have delivered in FY20, the balance sheet is in great shape to continue to fund development of our growth projects, enable advancement of our exciting exploration opportunities and pay a dividend to shareholders.”

“Western Areas is now set for long term nickel exposure, in what is expected to be a growing market for some years to come thanks to EV linked battery demand. The long-life Odysseus project makes Western Areas one of the few companies that can demonstrate a clear mining reserve that extends into the 2030’s and beyond,” Mr Lougher added.

FY 2021 guidance.

In FY 2021 the company is guiding to production of 19,000 tonnes to 21,000 tonnes of nickel concentrate. This compares to production of 20,900 tonnes in FY 2020.

This is expected to be achieved with a unit cash cost of $3.25 per pound to $3.75 per pound. This will be an increase from $3.13 per pound in FY 2020, but still materially lower than this year’s realised price before payability of $9.42 per pound.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Hub24 Ltd (ASX: HUB) share price fell this morning even after it reported an increase in profits and dividend despite COVID-19.

Shares in the financial platform company slumped 3.1% to $15.09 when the S&P/ASX 200 Index (Index:^AXJO) jumped 1.1% at the time of writing.

The bout of profit taking comes as the stock hit a record high yesterday of $15.57. Hub24 may be a victim of “buy the rumour and sell the fact”.

Big operating leverage

Hub24 unveiled a 60% surge in underlying FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) to $24.7 million as platform net inflows jumped 27% to a record $4.95 billion.

The group’s significant operating leverage was on display as the 37% uplift in platform revenue to $74.3 million was outpaced by the bigger increase in EBITDA.

It’s underlying net profit also increased by 49% over FY19 to $10.1 million, although its statutory net profit advanced a more modest 13.9% to $8.2 million as it contained one-off restructuring costs.

Dividend upgrade

That rise in its top and bottom lines aren’t the only thing that will please shareholders. Management resolved to pay a bigger the final dividend of 3.5 cents a share, which is 35% more than the same time last year.

This takes Hub24’s full year dividend to 7 cents a share compared to the 4.6 cents it declared for whole of FY19.

The dividend will hardly qualify Hub24 as an income stock with a yield under 1%, but the bigger payout signifies management’s confidence about future growth. That’s worth something in this highly unpredictable environment.

Momentum going into FY21

On that front, the outlook for the group looks positive with Funds Under Administration (FUA) continuing to rise in the first few months of FY21.

FUA jumped 34% to $17.4 billion between 30 June last year to this year. Management reported that FUA is up by another $1.1 billion since then.

$30 billion FUA by FY22?

“HUB24’s leadership in the growing managed portfolio space has continued, maintaining 1st place for managed accounts functionality for the 4th year running, and this year adding another 108 new managed portfolios to the platform,” said the company in its ASX statement.

“Moving forward HUB24 expects ongoing strong net inflows to the platform, and the company is now targeting a FUA range of $28-$32 billion by 30 June 2022,” said the company in its ASX statement.”

Market share gains for Hub24’s platform accelerated in FY20 to 1.9%. This is up from the 1.3% increase recorded in June FY19.

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Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The MNF Group Ltd (ASX: MNF) share price has come under pressure on Tuesday despite the release of a strong FY 2020 result.

At the time of writing the leading voice communications software provider’s shares are down 13% to $5.39.

How did MNF perform in FY 2020?

MNF was a very strong performer in FY 2020 and delivered a record profit result in line with its guidance.

For the 12 months ended 30 June 2020, MNF’s revenue increased 7% to $230.9 million. This was driven by strong demand for products during the pandemic, particularly those generating recurring revenue. This resulted in MNF delivering a 27% increase in recurring revenue to $101.5 million. Management believes this demonstrates the success of its strategy to increase recurring revenue.

The company notes that phone numbers on its network, the key performance indicator for future growth, reached 4.5 million at the end of June. This represents organic growth of 17% on the prior year.

Positively, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin continued its upward trajectory in FY 2020 and reached 17% of total revenue. This was driven by the company’s ability to manage costs while driving growth.

This ultimately led to MNF’s net profit after tax (NPAT) growing 20% in FY 2020 to $11.95 million. And excluding acquisition costs, amortisation of acquired customer contracts, and acquired software and tax affected restructure costs (NPAT-A), its profits were up 18% to $16.6 million.

This compares to NPAT guidance of $10 million to $12 million and underlying NPAT-A guidance of $14.7 million to $16.7 million.

In light of this profit growth and its strong cash balance, the company has declared a final dividend of 3.6 cents per share fully franked. This brings its full year dividend to 6.1 cents per share.

Structural and behavioural changes driving demand.

MNF Group’s CEO, Rene Sugo, was very pleased with the company’s “robust” performance in FY 2020.

He commented: “After a strong first half, some products performed particularly well as a result of the structural and behavioral changes to voice and collaborative technology caused by the pandemic. As people transitioned from workplaces and schools to homes, seeking new ways to stay connected and adjust to new ways of working, we experienced a surge in traffic volumes across all customer segments in March and April. While traffic patterns have settled since the highs of March, we have seen new trends emerge, many of which are here to stay.”

Outlook.

It appears to be the company’s cautious outlook which has put pressure on its shares today. Management acknowledges that the COVID-19 situation continues to evolve and, while currently there is strong demand for MNF’s services, the external environment predicts a significant degree of uncertainty.

It advised that it has seen traffic patterns settle in the last six to eight weeks with volumes remaining steady at about 175% above pre-pandemic levels for key use cases such as UCaaS, CPaaS and collaboration.

However, the usage of other use cases such as audio conferencing, small business phone systems, and mobile roaming continue to be lower than pre-pandemic levels.

Mr Sugo commented: “We are seeing a new normal in the use of collaboration technology, with the pandemic accelerating the adoption of new ways of communicating, which will support the growth of MNF.”

“However, areas such as mobile roaming and small business products are experiencing some challenges and while we expect these to make a full recovery post-COVID, they are providing short term headwinds into FY21. Similarly, while traditional audio conferencing benefitted during the lockdown, it is now declining as a result of the shift to the newer, online collaboration tools.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Propel Funeral Partners Ltd (ASX: PFP) share price is on the rise this morning following the company’s release of its FY20 results. At the time of writing, the Propel Funeral Partners share price had increased 2.11% in early trade.

The company is the second largest provider of death care services in Australia and New Zealand and operates from 130 locations.

FY20 Results

Propel Funeral Partners delivered a 16.5% increase in revenue to $110.8 million in FY20, compared to $95.1 million in the prior corresponding period (pcp). 

Additionally, the company’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) has increased 36.4% to $32.4 million in FY20 from $23.8 million in the pcp. Pleasingly, Propel’s operating margin increased by 420 basis points to 29.2% in FY20, up from 25% in the pcp.

Adjusted earnings per share (EPS) increased 6.1% to 14.4 cents in FY20. This compares to 13.6 cents in the prior corresponding period. Analysts were predicting EPS of 14.2 cents.

Furthermore, operating net profit after tax increased 6.5% to $14.2 million in FY20, up from $13.3 million in the pcp.

Propel Funeral Partners has declared a fully franked dividend of 6 cents per share which brings the total dividend paid in FY20 to 10 cents per share. 

The amount of funerals performed by the company in FY20 increased 17.6% compared to the pcp. In total, 13,299 funerals were performed. Average revenue per funeral has had a compound annual growth rate (CAGR) of ~2.5% since FY14 and was $5,672 in FY20. 

The company’s cash flow conversion has remained strong with 103.4% in FY20 which is an increase of 600 basis points compared to the pcp. Pleasingly, Propel Funeral Partners has been averaging a cash flow conversion of ~99% since FY15.

Additionally, Propel Funeral Partners’ market share continues to grow. In calendar year (CY) 2019, the company had a market share of ~6.3% compared to ~1.2% in CY15.

Outlook

The company experienced resilient operating earnings for the month of July 2020. Additionally, average revenue per funeral continued to improve compared to the pcp within Propel Funeral Partners target range of 2-4%. However, it performed ~1200 funerals in line with pcp but below the company’s expectations.

Growth is expected in FY21 and the future due to the growing and ageing population, strong funding position and acquisitions.

The coronavirus pandemic is continuing to have an impact because of restrictions related to the number of attendees in Victoria and Auckland. 

Geographic diversification across Australia and New Zealand has provided the company with resilience in earnings and operating cash flow. 

The Propel Funeral Partners share price is currently trading at $2.90 and has a market capitalisation of $279 million.

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Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Propel Funeral Partners Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price is pushing higher this morning after the announcement of an acquisition.

At the time of writing the business and accounting software provider’s shares are up 3% to a record high of $101.31.

What did Xero announce?

This morning Xero announced the acquisition of Waddle for up to A$80 million.

Founded in Australia in 2014, Waddle is a cloud-based lending platform that helps small businesses access capital through invoice financing. Its platform allows a range of banks and fintechs to more easily lend to small businesses by leveraging their accounting data and automating many of the manual processes typically involved in invoice financing.

Management believes the acquisition aligns with its strategy to grow the small business platform and to address critical small business financial needs.

It expects Waddle’s best-in-class cloud-lending platform, combined with small businesses’ invoice data, to enable the delivery of tailored invoice financing solutions to small businesses.

What are the terms of the deal?

Xero has agreed an upfront cash payment of A$31 million and subsequent earnout payments of up to A$49 million based on product development and revenue milestones. Any earnout payments are expected to be settled 50% in Xero shares and 50% in cash.

Completion of the transaction is expected before the end of calendar year 2020 and is subject to satisfaction of closing conditions. Transaction, integration, and operating costs are anticipated to have minimal impact on Xero’s FY 2021 EBITDA.

Xero’s CEO, Steve Vamos, commented: “The acquisition of Waddle is an important step in our strategy to help small businesses better manage cash flow and gain access to working capital. Waddle’s lending platform has the potential to enable a wide range of banks, fintechs and other lenders to better support small business financial needs. We’re excited about the benefits Waddle can bring to many of our customers and banking partners.”

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The long-tenured Amazon (NASDAQ: AMZN) executive often pegged as a potential replacement for CEO Jeff Bezos is stepping down. The company reported in an SEC filing submitted on Friday that Jeffrey Wilke, chief of its worldwide consumer unit, will retire in the first quarter of the coming year. Senior Vice President of Retail Operations Dave Clark will be promoted to the position.

While Bezos is considered the face of the company and is almost synonymous with Amazon, Wilke has left his mark. He’s been with the company since 1999, and was promoted to CEO of its worldwide consumer arm in 2016. He’s largely credited with building the company’s logistics capabilities that allow it to control around 40% of North America’s e-commerce market, according to numbers from eMarketer.

Wilke also made a point of ensuring all new employees spent time in fulfillment centers so they would know exactly what happens on the company’s front lines, where products are picked and packed after an online purchase is made. It’s impossible to know just how much that real-world exposure helped to shape Amazon’s operation.

Dave Clark brings a wealth of this frontline experience to the role. He’s held multiple managerial roles at several fulfillment centers, and helped to establish fulfillment centers including the one built in Tokyo, Japan. Clark was also hired by Amazon in 1999 after receiving his MBA, but at 47 years old, is five years younger than Wilke. His age and a slightly different perspective on e-commerce’s advent may also become evident through changes made when he takes over Wilke’s job.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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James Brumley has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Seven West Media Ltd (ASX: SWM) share price is on watch this morning following the release of its full year 2020 financial results.

Advertising market takes a big hit

Seven West Media reported an underlying EBITDA of $129.6 million for the 12 months to June 2020. This was a very sharp drop of 48.8% on the prior year, as the impact of the COVID-19 pandemic on advertising market conditions kicked in harshly during the fourth quarter. EBIT for the group came in at $98.7 million for the full year, down by 53.6% on the prior 12 months. Net profit after tax (NPAT) fell by a massive 66.1% to $40.8 million.

Total revenue from continuing operations came in at $1,227.1 million for Seven West Media. This was down by 14.0 per cent on FY 2019. However, total group costs from continuing operations decreased 7.1 per cent to $1,129.6 million. This result was achieved by major transformation initiatives implemented across the wider group.

But the digital segment almost doubles

EBIT for the digital segment grew very strongly by 92% during FY 2020. Seven West Media has placed a heavy focus on its broadcast video on demand BVOD platform. This has seen its 7plus digital platform dominate its free-to-air (FTA) competitors over the prior year.

7plus managed to achieve an average monthly commercial free-to-air BVOD market share of 46 per cent, during the April to July period. It also grew at double the overall average market growth rate.

Transformation strategy on track

Seven West Media has continued to execute well on its transform strategy, despite the challenging market conditions. The group’s content-led growth strategy is already starting to bear fruit with the launch of original content such as Big Brother and a Farmer Wants a Wife.

Seven West Media chief executive officer James Warburton said:

It’s been 12 months since I returned to Seven West Media and laid out our new strategy to transform the company. We have made material progress on our transformation plan despite the challenges that COVID-19 has thrown at us. It has not changed our plan, but assisted us to accelerate the transformation.

… Real structural change is under way at The West. Generational change across regional and community mastheads is in motion, with a digital-first editorial focus. Digital subscribers have almost doubled to 60,000 over the last 12 months.

Market Outlook for FY 2021

Due to the uncertainty still remaining in the wider advertising market, the group was unable to provide any FY 2021 earnings guidance.

Seven West Media is anticipating that advertising market conditions are likely to remain volatile and unpredictable during the first quarter of FY 2021. However, on a more positive note, the group reported the rate of decline had somewhat moderated since the last quarter.

Mr Warburton added: “We continue to focus on transforming our business. Our objective is to establish a lean, efficient operating cost base to deliver further savings in 2021 …”.

The Seven West Media share price closed yesterday at $0.16.

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Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are always ASX share opportunities to invest in, you just need to find them.

Several areas of the economy have been running strongly over the last few months as most parts of the country lift restrictions. Some businesses look too expensive to be buys today in my opinion.

But for some other shares, I think there could be good value for both growth and income investors:

Growth share pick: Citadel Group Ltd (ASX: CGL)

Citadel is one of the good value ASX growth shares in my opinion. The core Citadel business is involved in providing software and managing data for important sectors like education, defence and healthcare. These are reliable, defensive industries. They should be good long-term clients. 

Software is an attractive sector to be invested in – tech businesses can create high gross profit margins because of how little cost there is to delivering software to clients once it has been developed.

The Citadel share price has risen by 32% since the start of August 2020. But I think there could be more growth to come for the ASX share after its UK healthcare software acquisition called Wellbeing. The acquisition will raise Citadel’s recurring revenue as a percentage of total revenue and it will gain a higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

But there are large potential selling benefits for Citadel – it can sell its Australian healthcare software to UK clients and it can sell the UK software to Australian clients. The ASX share can sell a combined package to new clients in existing markets and hopefully expand into new markets.

Citadel has already said that COVID-19 hasn’t really affected the business. The company could deliver solid growth over the coming years and I think it looks good value at under 15x FY22’s estimated earnings.

Income share pick: Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is an agricultural real estate investment trust (REIT). It owns two types of farms: berry and citrus. The ASX share actually owns some of the largest berry and citrus farms in Australia.

The business earns rent in two different ways. It earns a fixed rental return from its farms and it also earns variable rent from a profit-share agreement with its tenant Costa Group Holdings Ltd (ASX: CGC). Vitalharvest receives a quarter of the earnings of each farm.

Most readers would know that plenty of agriculture operators have been struggling because of drought. Costa is no different – its earnings have been affected in recent times. Crumbly berries and fruit flies have also affected things for Costa, which has had a knock-on effect on Vitalharvest’s variable rent.

Despite the difficult conditions, Vitalharvest was still able to pay a distribution of 4.75 cents per unit in 2020. That amounts to a distribution yield of 6.1% at the current Vitalharvest share price. That’s a solid starting yield.

If profitability (and the distribution) returned to 2019 levels then the ASX share would offer a yield of 7.3%.

Primewest Group Ltd (ASX: PWG) taking over management of the REIT is another reason why the ASX share could be a good buy today.

The new manager plans to make acquisitions for Vitalharvest. It will still be looking for farms to buy in Australia (and New Zealand). But Primewest will also be looking for assets that are involved in food logistics such as food processing and food storage.

Those new areas may be able to provide more consistent earnings for Vitalharvest and therefore more consistent distributions.

At 31 December 2019, Vitalharvest had a net asset value (NAV) of $0.95 per share. At the current Vitalharvest share price that’s an 18% discount.

Foolish takeaway

I think both of these ASX shares look good value for the short-term and long-term. Citadel looks undervalued for its growth potential and Vitalharvest could become a more reliable business for income investors – it offers an attractive yield even though it has suffered.

More reading

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• Earnings preview: What to expect from the Costa Group half year result

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Citadel Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla Inc (NASDAQ: TSLA) is going to benefit so much from pent-up electric vehicle demand in China that one analyst says his best-case scenario for the stock will see it rocket 70% higher to $3,500 per share from its current price of $2,050.

Wedbush analyst Daniel Ives told investors in a note Tesla’s recent price cuts coming at a time when demand for its Model 3 was welling up created a “perfect storm of demand” that alone would be worth an additional $400 per share or more being added to the stock price.

As a result, he increased his “bull case target” price for Tesla from $2,500 to $3,500 per share.

Gigafactory 3 is Tesla’s advanced, state-of-the-art facility in Shanghai designed to produce both its Model 3 and Model Y electric motors and battery packs, as well as Tesla’s Powerwall and Powerpack energy storage products.

The factory is currently dedicated to Model 3 production, but is undergoing a second phase of construction that appears to be nearing completion that will handle production of the Model Y.

According to TheFly.com, Ives wrote the factory’s demand appears to be suggesting a 150,000 unit run rate for the Model 3 in its very first year of production. He noted the China component of Tesla’s electric vehicle growth story could add $35 in earnings per share by 2025 or 2026, compared to prior estimates of $20 to $25 per share. It’s the reason he hiked his best-case scenario price target.

However, it’s notable Ives’ primary outlook for Tesla maintains a neutral rating on the stock and a $1,900 price target.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Analyst says Tesla best-case scenario could see share price spike 70% to $3,500 appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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