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.
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.