Tesla's Target Price Was Slashed by Wells Fargo and UBS. Where is Tesla Headed Next?
Tesla stock fell by 4.5%, closing at $169.48 on Wednesday after Wells Fargo cut Tesla to its lowest rating, citing the potential for more price cuts that could hit the bottom line.
Source: Moomoo
Analyst Colin Langan downgraded TSLA to a Sell-equivalent Underweight from Equal Weight and lowered its price target to $125 from $200, saying its valuation premium to the other Magnificent 7 stocks is "likely a risk."
"While an EV & battery tech leader, TSLA screens poorly relative to Mag 7 peers, trading at 58-times PE vs. peers at 31-times," Langan said. The stock trades at about 89-times Wells Fargo estimates.
"We see downside risk to volume as price cuts are having a diminishing impact," Langan said. "We see headwinds from disappointing deliveries and more price cuts, which likely drive the firm's 2024 EPS estimate to 32% below consensus."
"TSLA's next major launch is the next gen compact SUV, nicknamed Model 2, expected 2H 2025," Langan added. "Launch timing is a concern given planning seemed rushed after a pivot away from Robotaxi & the unprecedented use of unboxed production."
Following Wells Fargo, UBS lowered its price target for Tesla to $165 from $225
UBS lowered the firm's price target on Tesla to $165 from $225, and keeps a Neutral rating on the shares after lowering the firm's Q1 delivery forecast to 432,000 from 466,000, noting that the firm's view is now about 10% below the 477,000 unit consensus forecast. The firm's 2024 delivery forecast is now 1.96M units, down from 2.02M previously and about 5% below consensus, the analyst tells investors.
However, Wedbush analyst Dan Ives did his best to support the electric-vehicle giant by saying negative investor sentiment is "way overdone," and its stock could boomerang up 77% in the next 12 months.
"We believe the stock is way overshooting on the negative front as the demand story for Tesla is more in stabilization mode heading to the rest of 2024, price cuts are moderating, battery costs/production is showing strong cost efficiencies, and a Model 2 (sub $30k vehicle) is on the roadmap for the next year," analysts led by tech bull Dan Ives wrote.
It's not all smooth sailing for Tesla in the short term, given the lackluster demand for electric vehicles, an arson attack that temporarily shut down a Berlin factory, and uproar around Musk's compensation package. Still, Ives reiterated that he sees the stock price hitting $315 in the next 12 months.
Source: Seeking Alpha, Yahoo Finance
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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ToxicAf : Lol
73768945 : Whaaa
10baggerbamm : this is proof how useless analysts are they upgraded the top and they downgrade after a stock has collapsed if they were worth their paycheck they would have cautioned everybody when the price cuts were coming in by Tesla 3/4 ago but they don't that just shows their back seat drivers looking in the rear view mirror trying to tell everybody where things are going to go after they moved
Kmboth 73768945: Insight that there still out of budget with warranty claims . Having to pay for warranty claims more then the average dealer . That’s money out of there own pocket.Shows where most of there losses show up . Having only less than a decade on the market and invested in a new world with EV all together wouldn’t expect anything less. Curious to see TSLA up coming strategy.
knowhow2moo : Last call already.
Patrick Ting 10baggerbamm: well i mean, they only announce the sell call when they themselves have sold all their exposures right