Tesla: shares gain, UBS lifts to 'neutral'
(CercleFinance.com) - Tesla shares are up almost 7% in a mixed broader US stockmarket on Wednesday after UBS upgraded the electric-car maker from "sell" to "neutral," citing "relatively high" demand visibility and "sustained" tech leadership.
"Tesla has currently the best visibility on near-term demand thanks to the backlog for Model Y," the broker says in a note on global automakers.
The flipside is the net debt position, that could raise concerns in a downside scenario, UBS adds.
Tesla currently has net debt of 4.9 billion dollars.
Note that UBS has also raised its target price for the stock from 410 dollars to 420 dollars.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.