Electric & Autonomous Vehicles News - 02/25/2020 - Views: 231

Tesla’s valuation needs to be more ‘grounded’ to profit, analyst says

Jefferies analysts on Tuesday cut their ratings on Tesla Inc. stock to hold, saying they needed more visibility into the company’s potential profit and its planned “battery day.”

The analysts raised their price target on Tesla TSLA-4.06% shares to $800 from $600, but lowered their rating from buy as the stock has gained around 60% in the past six weeks. “We still need valuation to be grounded into some visibility on market size and potential profitability,” they said in the note.

Tesla shares extended their losses to a second session on Tuesday, recently off 4% amid renewed equity-market weakness. The Jefferies analysts, led by Philippe Houchois, said they continue to view Tesla as “uniquely engaged in a positive sum-game in the EV transition against legacy OEMs facing more severe strategic choices.”