Tesla Motors, Inc. (NASDAQ:TSLA) downgrades bring buying opportunity

Tesla Motors, Inc. (NASDAQ:TSLA) downgrades bring buying opportunity


Baird analyst Ben Kallo views the recent weakness in shares of Tesla Motors, Inc. (NASDAQ:TSLA) following two analyst downgrades as a buying opportunity. Deutsche Bank yesterday and Pacific Crest today cut the stock to hold equivalent ratings on valuation concerns. The downgrades do not fully value the Model X launch, Kallo tells investors this morning in a research note. The lower priced electric vehicle will increase Tesla’s brand value and help solidify the company as a long-term investment, the analyst writes. He keeps an Outperform rating on the stock with a $335 price target. Tesla is down $12.41 to $255.47 in early trading.

Shares of Tesla Motors, Inc. (NASDAQ:TSLA) are trading -4.04% at the time of writing on the news and in the range of 254.31 – 260.80 for the current session. In taking a deeper look at the stock and where it might be headed, brokerage firms on Wall Street currently have a consensus one year price target of 288.76 on the shares. This is according to analysts surveyed by Thomson Reuters First Call. The sell-side analysts are projecting earnings per share of 0.03 for the next fiscal quarter. For the current year, analysts are predicting earnings of -0.03 per share according to First Call.

In looking at where the stock is trading on a technical level, the stock is trading +0.08% away from its 50 day moving average of 256.85. Based on the most recent available data, the equity is -11.79% off of its 52-week high of 291.42 and +41.70% away from its 52-week low which is 181.40.

In taking a look at the company’s valuation, the firm’s price to earnings ratio stands at N/A. This is a crucial indicator investors watch as higher ratios compared to peers, would suggest higher future earnings growth potential for the stock. The price to current year EPS estimates from research analysts currently stands at N/A. In looking further ahead, potential investors should note that the company’s price to next year’s EPS estimates is 74.72.

Today, the stock opened at 259.52 and the last bid at the time of writing stood at 257.05. During the session thus far, the equity dipped down to 254.31 and touched 260.80 as the high point. Tesla Motors, Inc. has a market cap of 32.49B and has seen an average daily volume of 3927170 over the past three months.