JMP Securities analyst Joseph Osha downgraded Tesla Inc.’s TSLA rating,
for the market to outperform the market on Tuesday, the day before the company reports second-quarter earnings. “The company’s valuation now slightly exceeds the $ 1,500 price target we recently set, and we believe that any medium-term success Tesla may discuss during its earnings call tomorrow is now largely reflected in the stock price,” Osha wrote. “We continue to believe that Tesla can become a $ 100 billion auto company by 2025, but we cannot reach a reasonable basis to argue that the stock should be valued above current levels, even taking into account our fundamental perspective.” He said there is room for some expectations outside the second-quarter consensus, but he also argued that “investors face challenges in obtaining additional returns from here.” Osha removed its target price along with the downgrade. Tesla shares were up 0.8% in pre-market trading on Tuesday, and stocks were up 64% in the past month as the S&P 500 SPX,
it has increased by about 5%.
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