fbpx

QQQ
-4.48
382.79
-1.18%
BTC/USD
+ 818.27
48556.09
+ 1.71%
DIA
-2.49
350.67
-0.72%
SPY
-5.78
452.95
-1.29%
TLT
-0.72
150.61
-0.48%
GLD
-0.25
164.28
-0.15%

Canaccord Pumps The Brakes On Tesla Following Stock's Huge Run

February 5, 2020 11:50 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Canaccord Pumps The Brakes On Tesla Following Stock's Huge Run

After the massive spike in Tesla Inc’s (NASDAQ:TSLA) stock so far this year, it’s time for investors “to lock in profits,” according to Canaccord Genuity.

The Tesla Analyst

Jed Dorsheimer downgraded Tesla from Buy to Hold with an unchanged $750 price target.

The Tesla Thesis

The clear buy signal seen for Tesla’s shares at the beginning of 2020 has played out, and the risk of China's coronavirus outbreak is a “clear headwind” to the company’s Shanghai facility, Dorsheimer said in the Tuesday downgrade note. (See his track record here.)

Expectations for Tesla’s Model 3 production in China are pinned at 3,000 per week, the analyst said.

The country is on lockdown, and the production expectations for the first quarter may be reset, which needs to be reflected in the valuation, he said.

Tesla is a major player in the electric vehicle space, and the April battery day will help investors understand how formidable the company’s lead is, Dorsheimer said.

The company’s shares could be highly volatile now, and “patient investors will likely get a more attractive entry point,” the analyst said.

Tesla Price Action

The stock was down 13.93% at $763.51 at the time of publication Wednesday.

Related Links:

Benzinga's Top Upgrades, Downgrades For February 5, 2020

Elon Musk Offers Short Sellers An Overlooked Argument Against Tesla

Photo courtesy of Tesla.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Tesla Analyst Cuts Price Target By 17% On Potential Battery Delay

Tesla Analyst Cuts Price Target By 17% On Potential Battery Delay

Tesla, Inc. read more
Why This Lucid Group Analyst Says It's Among 'Most Legitimate' EV Startups

Why This Lucid Group Analyst Says It's Among 'Most Legitimate' EV Startups

Although Lucid Group Inc’s (NASDAQ: LCID) stock is currently trading at a premium to the average multiples of its SPAC peers in the electric vehicle original equipment manufacturers space, it is still at a “notable discount” to Tesla Inc’s (NASDAQ: read more
Why This Analyst Believes Lucid Group's Stock Has Raced Ahead Of Valuation

Why This Analyst Believes Lucid Group's Stock Has Raced Ahead Of Valuation

Although Lucid Group Inc (NASDAQ: LCID) features compelling technologies that could scale profitably, its business faces significant competition from both legacy players and startups, according to Morgan Stanley. read more
Tesla, Apple Customers Are The Real Ones 'Losing Out,' Caught Between The Two Companies' Rivalry, Says Analyst

Tesla, Apple Customers Are The Real Ones 'Losing Out,' Caught Between The Two Companies' Rivalry, Says Analyst

Tesla Inc (NASDAQ: TSLA) and Apple Inc (NASDAQ: AAPL) customers are “losing out” as the two companies emerge as ever potent rivals, as per technology analyst Mark Gurman. read more