Tesla may run to $1,000; Cheesecake Factory drops; IMAX cutting jobs

Tesla (TSLA) – A pair of bullish calls and strong results from Tesla’s Model X safety test is pushing shares higher in intraday trading. Billionaire investor Ron Baron told CNBC Tuesday morning that Tesla shares could rally to $500-$600 in 2018 and reach $1,000 by 2020. And he’s not the only one who thinks shares are set to soar. Germany-based Berenberg upgraded Tesla to a buy rating and boosted its price target to $464, implying the stock could rally 29% from Monday’s close. Analyst Alexander Haissl wrote, “Once the business reaches scale, the cash generation potential is significantly superior to existing premium OEMs, with cash flow per vehicle more than 50% higher.”

Tesla also announced that it received good news from the National Highway Traffic Safety administration. The electric carmaker said Tuesday that its Model X became the first SUV ever to get a 5-star crash rating in every category.

Cheesecake Factory (CAKE) – The restaurant chain is under pressure after updating its outlook. The Cheesecake Factory now expects its fiscal second-quarter comparable sales to drop about 1%, down from its previous guidance for an increase of one to two percent. It blamed weather for declining sales, saying that customers were not able to use the restaurant’s patios.

IMAX (IMAX) – The company is laying off about 100 full-time workers, including positions at IMAX China, as it looks to cut costs amid a slowdown at box offices. The job cuts are part of a broader plan by the company to reduce costs by about $20 million a year. IMAX also announced that its board of directors approved a new share re-purchase program of up to $200 million of its common shares. IMAX shares are down about 18.5% so far this year.

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