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3 Big Risks In Goldman's Tesla Upgrade

3 Big Risks In Goldman's Tesla Upgrade
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Tesla Motors Inc (NASDAQ: TSLA) shares have lost 20 percent since April 18. Goldman Sachs’ Patrick Archambault upgraded the rating for the company to Buy, with a price target of $250, saying that the pullback had resulted in 22 percent upside in shares over the next six months.

Apart from referring to the company's “disruptive potential," Archambault said the ramp of Model X, some other near-term catalysts and low expectations could lend upside.

Related Link: How Has Elon Musk Been So Successful So Quickly?

The analyst enumerated three big risks to the upgrade:

  1. Worsening overall investor sentiment, lessening the appetite for concept stocks.
  2. Further delays in the production ramp of Model X, which could result in guidance being lowered as well as significant cash burn.
  3. Operating expenses and/or capex investments surpassing the projections.

Latest Ratings for TSLA

Oct 2016Goldman SachsDowngradesBuyNeutral
Sep 2016Cowen & Co.Initiates Coverage onUnderperform
Jun 2016Argus ResearchDowngradesBuyHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Patrick ArchambaultAnalyst Color Long Ideas Upgrades Analyst Ratings Trading Ideas Best of Benzinga


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