Market Overview

Baird Defends Tesla In Lieu Of Recent Downgrades, Sees 'Buying Opportunity'

Share:
Related TSLA
The 9 Hottest Toys For The 2017 Holidays, Courtesy Of Walmart
GM Finally Makes New High
Stocks Close Lower; Breakouts In 3 Industrial Giants Share A Common Flaw (Investor's Business Daily)

Tesla Motors Inc (NASDAQ: TSLA) shares are under pressure Wednesday following Pacific Crest's downgrade.

The morning draw-down follows Deutsche Bank's downgrade on Tuesday. Analysts at Baird felt obligated to opine on the action and issued a note defending Tesla, saying the company doesn't need China to hit full year targets.

"We believe recent downgrades, which have been largely valuation driven, donot fully value the Model X launch," Ben Kallo wrote. "Additionally, thereare several catalysts ahead, including additional details about the storage demand(which should be provided on the Q2 call), construction milestones and productionannouncements at the gigafactory, and the release of details about the Model III(prototype expected in March)."

Baird further believes that recent downgrades have been driven by a need to par gains following a 20 percent YTD appreciation and says "this is the wrong time to pull out of the stock" noting the fast approaching Model X launch and Q2 results release.

Baird rates Tesla at Outperform and has a PT of $335. Tesla shares traded down nearly 4 percent Wednesday morning to $257.54.

Latest Ratings for TSLA

DateFirmActionFromTo
Sep 2017JefferiesInitiates Coverage OnUnderperform
Sep 2017BarclaysMaintainsUnderweight
Sep 2017Deutsche BankMaintainsHold

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: BairdAnalyst Color Long Ideas Price Target Analyst Ratings Movers Trading Ideas

 

Related Articles (TSLA)

View Comments and Join the Discussion!
Loading...
Loading...