Tesla is 'a must-own stock,' Piper Jaffray says, and will climb more than 25% next year

Tesla Model 3
Silas Stein | picture alliance | Getty Images

Piper Jaffray increased its price target on Tesla's stock to $423 a share, saying that "for all its controversy and volatility, we think TSLA is a must-own stock" in the auto sector.

Tesla shares rose 0.4% on Tuesday. Piper's new 12-month price target, up from $372 a share, represents a 26% climb from Tesla's close of $336.20 a share. While Tesla's stock is nearly flat for 2019, that's after the stock rallied nearly 50% in the past three months.

But Piper says it's difficult "to find a more impactful" disruptive company in any industry than Tesla.

More In Pro News and Analysis

CNBC ProThe stock market continues to keep sellers at bay, offering few reasons to fight the tape
CNBC ProThese stocks are ready to rally as the earnings recovery kicks in, analysts say
CNBC ProCathie Wood talks about her top disruptive ideas, including Netflix and Tesla