Wall Street Slaps Tesla With Downgrades. Do They Matter?
$Tesla(TSLA.US$'s shares fell by 6.06% Monday as Goldman Sachs downgraded the company to neutral from buy after Morgan Stanley and Barclays reduced their ratings last week. Goldman Sachs believes the stock better reflects its "positive long-term view" of the electric vehicle company's growth and competitive positioning.
With the rapid decline in the past week, Tesla's stock price is approaching the gap between 235.23-240.70.
As Tesla's searing rally elicits caution from Wall Street, investors wonder whether the downgrades matter. Yahoo Finance Senior Reporter, Pras Subramanian, shared his perspective yesterday.
Pretty much the same kind of call with the other banks, there, it's a valuation thing. They talked about how it better reflects the stock, and how it better reflects what they think is the long-term view of the company. And downgrade to neutralize is not as an overweight kind of position for investors.
It's funny because the downgrades are coming even as most of them are raising their price targets. So they still expect the stock to perform better, exactly.
---Pras Subramanian
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Dodgrblu : I hope they keep downgrading it. Every time they do it goes up. Most are probably in Gordon Johnson's camp. He thinks the stock is worth $40. Wow! Good thing I didn't read his book on how to invest.