UPDATE: Bank of America Downgrades Tesla Motors to Underperform on Valuation
Bank of America downgraded Tesla Motors (NASDAQ: TSLA) from Neutral to Underperform and maintained a $30.00 price objective.
Bank of America noted, "Due to the recent run-up in TSLA's stock price, the shares are now trading well above what we estimate as fair value. In fact, TSLA's 2/20 closing price of $38.54 implies a 2014e EV/EBITDA multiple of ~13.8X and an EV/Sales multiple of ~1.7X our forecasts, both of which appear excessive. As a result, we are lowering our rating on TSLA shares from Neutral to Underperform, while maintaining our $30 PO, based on a 2014E EV/EBITDA mult. of ~10.4X and an EV/Sales mult. of ~1.4X. We note that following a softer than expected 4Q12, we are also lowering our 2013e EPS from $0.30 to $0.10, but maintaining our 2014e of $1.80."
Tesla Motors closed at $38.54 on Wednesday.
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