Scanpix/Heiko Junge/via REUTERS
Tesla bulls and bears alike don’t like to admit when they’re wrong, but the firm Jefferies has bucked the trend.
Philippe Houchois, an equity analyst at the firm who’s held onto a Tesla price target well above where the declining shares have traded this year, cut his target by $100 on Friday.
“We got it wrong so far this year but remain convinced there is significant value in Tesla,” Houchois told investors in a note following a visit to the company’s Fremont, California manufacturing plant.
He lowered his target to $300 from $400, suggesting he thinks the stock can still rally around 37% from here. This marks the second time he’s cut this year, after lowering his target to $400 from $450 in April. Houchois maintained his “buy” rating.
His report comes one day after a bearish Goldman Sachs analyst lowered his target on the stock for the fourth time this year. David Tamberrino’s report was notable as it came even after the stock had staged a rally in recent weeks.
Tesla, long a battleground stock, has faced a barrage of critical analyst coverage in recent months as Wall Street frets over the electric-car maker’s demand prospects and its cash burn. The company also fell short of analysts’ earnings forecasts last quarter, and has seen a string of high-level departures this year.
Houchois ultimately cut his target and earnings estimates as he expects “volatile” financial results in the coming quarters. But, like many of his fellow Tesla bulls, Houchois is not concerned about demand for Tesla’s electric cars.
“Fresh from a visit of Fremont, we feel confident demand concern is excessive and industrial efficiency improving,” he wrote.
Tesla was little changed Friday, trading just over $219 per share. At its 2019 low earlier this month, Tesla had fallen by nearly 49% year-to-date. The stock has now lost 34% this year.
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