Why does an analyst predict an 80% drop after yesterday’s explosion? By Investing.com

© Reuters.

By David Wagner

Investing.com – Tesla Inc. (NASDAQ 🙂 Stocks Achieved a New Historic Record for the 4th Consecutive Sitting Yesterday, Closing Up 13.5% to $ 1371.5, and Accelerating Their Up Nearly 5% in Global Trade after market, over $ 1,400.

Recall that the action has climbed a total of 42.9% in the last five days.

However, more and more voices are raised to warn of the irrationality of this rise, Elon Musk himself having estimated a few weeks ago that the share price is too high.

This is also the opinion of analyst Ryan Brinkman of JPMorgan (NYSE :), who displays a target of 295 dollars on the title (after raising the target of 7.3% decided yesterday), which represents a fall about 80% at current prices.

Brinkman’s target is the lowest of 32 stock analysts listed by FactSet.

The increase in JP Morgan’s price target follows Tesla’s report last Thursday that the company delivered 90,650 vehicles in the second quarter, far more than the 72,000 forecast by analysts.

Brinkman has reiterated its underweight recommendation on Tesla for at least three years, citing “high valuation” combined with “high investor expectations and high execution risk”.

“Our underweight reflects significant positive investments, including a highly differentiated business model, an attractive product portfolio and cutting-edge technology, which we believe are more than offset by an execution risk greater than the average and a valuation that seems to set the prices at a high level, “wrote the bank in a note sent to its customers

Finally, note that of the 32 analysts interviewed by FactSet, 12 recommend the sale of the Tesla share, while 11 are neutral or equivalent and 9 recommend the purchase. The average price target targeted by these analysts is 774.98 dollars, 43.5% lower than current prices.

Responsibility: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.