Bank of America lowered shares of Tesla Motors (NASDAQ: TSLA) from a neutral rating to an underperform rating in a report released on Thursday. Bank of America currently has $30.00 target price on the stock.
“Due to the recent run-up in TSLA’s stock price, the shares are now trading well above what we estimate as fair value. In fact, TSLA’s 2/20 closing price of $38.54 implies a 2014e EV/EBITDA multiple of ~13.8X and an EV/Sales multiple of ~1.7X our forecasts, both of which appear excessive. As a result, we are lowering our rating on TSLA shares from Neutral to Underperform, while maintaining our $30 PO, based on a 2014E EV/EBITDA mult. of ~10.4X and an EV/Sales mult. of ~1.4X. We note that following a softer than expected 4Q12, we are also lowering our 2013e EPS from $0.30 to $0.10, but maintaining our 2014e of $1.80.,” Bank of America’s analyst wrote.
Tesla Motors traded down 2.05% on Thursday, hitting $35.37. Tesla Motors has a 52-week low of $25.52 and a 52-week high of $40.00. The stock’s 50-day moving average is currently $36.47. The company’s market cap is $4.024 billion.
A number of other analysts have also recently weighed in on TSLA. Analysts at Robert W. Baird raised their price target on shares of Tesla Motors from $35.00 to $45.00 in a research note to investors on Wednesday, February 13th. They now have an outperform rating on the stock. Separately, analysts at Jefferies Group reiterated a buy rating on shares of Tesla Motors in a research note to investors on Monday, February 11th. They now have a $45.00 price target on the stock, up previously from $36.00. Finally, analysts at JPMorgan Chase initiated coverage on shares of Tesla Motors in a research note to investors on Tuesday, December 18th. They set a neutral rating and a $37.00 price target on the stock. They noted that the move was a valuation call.
Seven equities research analysts have rated the stock with a buy rating, one has issued an overweight rating, four have issued a hold rating, and one has issued an underweight rating to the company’s stock. The company has an average rating of overweight and an average target price of $41.73.
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