Tesla: New Street Research downgrades to 'neutral'
(CercleFinance.com) - New Street Research on Thursday downgraded its rating on the Tesla stock from "buy" to "neutral," with a target price of 1,500 dollars, saying that near-term catalysts have now become limited.
In a note to clients, the independent research house said it sees no catalyst taking the stock "to the next level" on a one-year horizon.
"The primary drivers of our thesis are volume growth and gross margin expansion, and they will play out progressively over the next 5 years," analyst Pierre Ferragu said.
New Street said it is not yet factoring in potential upsides, such as an inflection point in automated driving, or the energy storage opportunity.
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