Tesla: UBS now says 'sell', cuts TP
(CercleFinance.com) - UBS announced on Friday that it had downgraded its recommendation on Tesla shares to 'sell' from 'neutral', with a target price reduced from $197 to $147.
In a research note, the broker considers that the share price has risen too fast, too soon - to such an extent that it now finds it difficult to justify the valuation levels recently reached.
While acknowledging that Elon Musk's group is more than a carmaker, thanks to its projects in energy and 100% autonomous driving, UBS considers that around 61% of its current valuation is based on intangible elements.
While it's true that Tesla is investing heavily in AI and that its technologies are making great strides, such investments are costly, time-consuming and the results are often slow to materialize, it warns.
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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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a research note, the broker considers that the share price has risen too fast, too soon - to such an extent that it now finds it difficult to justify the valuation levels recently reached.
While acknowledging that Elon Musk's group is more than a carmaker, thanks to its projects in energy and 100% autonomous driving, UBS considers that around 61% of its current valuation is based on intangible elements.
While it's true that Tesla is investing heavily in AI and that its technologies are making great strides, such investments are costly, time-consuming and the results are often slow to materialize, it warns.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.