In a report released today, Andrew Percoco from Morgan Stanley downgraded Tesla to a Hold, with a price target of $425.00.
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Andrew Percoco has given his Hold rating due to a combination of factors, primarily focusing on Tesla’s current market position and valuation. Tesla is recognized as a global leader in electric vehicles, renewable energy, and AI, which justifies its premium valuation. However, the stock’s current price reflects high expectations, bringing it closer to what Percoco considers fair value.
Additionally, while Tesla is more than just an auto manufacturer, the trading environment for its shares is expected to be volatile over the next year. This is partly due to anticipated downside in estimates and the fact that catalysts for its non-automotive businesses seem to be already priced in. Consequently, Percoco has set a price target of $425, implying a slight downside, and recommends waiting for a more favorable entry point.
In another report released on December 1, Barclays also maintained a Hold rating on the stock with a $350.00 price target.