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.
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