NoTrespassing
Elite Member
Tesla stock is up today, evidently Tesla investors like free stuff.
But, I don't hate Tesla or Elon Musk.
The disappointing performance of Tesla stock this year has resulted in multiple price target cuts among Wall Street analysts, with the latest one coming from Bernstein on Tuesday.
The broker’s analysts cut their target price on TSLA from $150 to $120, citing elevated valuation even after recent declines.
“Tesla’s stock price remains high on almost every valuation metric compared to both traditional and higher-growth auto OEMs, and also looks expensive relative to its reduced growth expectations when measured against tech comps,” they wrote.
“Our DCF now points to fair value of $93 (down from $120), primarily due to lowered estimates for terminal margins, but also due to a push-out in EV adoption growth,” added analysts.
The downward revision is influenced by several factors, Bernstein noted, including comparisons with similar companies, a revised 2050 discounted cash flow (DCF) valuation, an optimistic outlook for the near term, and “partial credit for value from Tesla’s other businesses,” primarily Full Self-Driving (FSD).
“Despite the stock’s underperformance YTD, we struggle to see a catalyst for TSLA. We expect tepid growth in 2024, as well as 2025, bringing into question the company’s growth narrative,” analysts concluded.
Bernstein maintained an Underperform rating on Tesla stock.
But, I don't hate Tesla or Elon Musk.
Tesla stock valuation 'still too high' says Bernstein, sees 30% downside risk
The disappointing performance of Tesla stock this year has resulted in multiple price target cuts among Wall Street analysts, with the latest one coming from Bernstein on Tuesday.
The broker’s analysts cut their target price on TSLA from $150 to $120, citing elevated valuation even after recent declines.
“Tesla’s stock price remains high on almost every valuation metric compared to both traditional and higher-growth auto OEMs, and also looks expensive relative to its reduced growth expectations when measured against tech comps,” they wrote.
“Our DCF now points to fair value of $93 (down from $120), primarily due to lowered estimates for terminal margins, but also due to a push-out in EV adoption growth,” added analysts.
The downward revision is influenced by several factors, Bernstein noted, including comparisons with similar companies, a revised 2050 discounted cash flow (DCF) valuation, an optimistic outlook for the near term, and “partial credit for value from Tesla’s other businesses,” primarily Full Self-Driving (FSD).
“Despite the stock’s underperformance YTD, we struggle to see a catalyst for TSLA. We expect tepid growth in 2024, as well as 2025, bringing into question the company’s growth narrative,” analysts concluded.
Bernstein maintained an Underperform rating on Tesla stock.
