Defamation case stemmed from Thai soccer team rescue

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Tesla stock price target raised at Citi, but it still implies a 34% drop

Shares of Tesla Inc. rose 0.6% in premarket trading Wednesday, after Citigroup bumped up its price target, citing improved free cash flow generation, but remained firmly bearish on the electric car maker because of an “unattractive risk/reward.” Analyst Itay Michaeli’s price target was raised to $222, which is 34% below Tuesday’s closing price of $336.20, from $191. Michaeli said his target and “sell/high risk” rating, balances Tesla’s “strong brand and secular exposures with the risks from operating execution, incoming competition and balance-sheet positioning.” He said the demand story remains mixed, there hasn’t been “convincing evidence” supporting a strong demand outlook for the Model Y vehicles, Tesla’s ability to sustain profitability remains a question and he’s still unconvinced on the Tesla RoboTaxi AV story. “Though Tesla shares have underperformed this year, the recent rally seems overdone, in our view, leaving the risk/reward skewed negatively,” Michaeli wrote in a note to clients. The stock has gained 1.0% year to date through Tuesday, while the S&P 500 has rallied 23.4%.

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