Tesla’s stock bounces, as long-time bearish analyst at J.P. Morgan lifts price target

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Shares of Tesla Inc. rose 1.9% in premarket trading Monday, after dropping 7.4% in the previous session, as a long-time bearish analyst lifted his price target in the wake of the electric vehicle company’s third-quarter deliveries announcement. Analyst Ryan Brinkman at J.P. Morgan, who has had an underweight rating on Tesla’s stock for at least the past three years, raised his price target to $75, which is 82% below Friday’s closing price of $415.09, from $65. He also raised his 2020 adjusted earnings per share estimate to $1.95 from $1.80, and his 2021 estimate to $2.50 from $1.85, to account for third-quarter deliveries data that exceeded his expectations. The FactSet EPS consensus is $1.81 for 2020 and $2.92 for 2021. “We remain underweight-rated on [Tesla] shares, on what we see as lofty valuation coupled with high investor expectations and high execution risk,” Brinkman wrote in a note to clients. Of the 37 analysts surveyed by FactSet, Brinkman is one of 11 who are bearish on Tesla’s stock. There are two analysts with lower price targets, AlgoSun Global’s Andrei Zakharov at $60 and GLJ Research’s Gordon Johnson at $19. The average target of the analysts surveyed by FactSet is $333.13, or 19.7% below Friday’s closing price. The stock has rocketed 396.1% year to date through Friday, while the S&P 500 has edged up 3.6%.
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