Add one more Wall Street bank to the short list of research shops calling for Tesla (TSLA) stock to fall from its current level.
HSBC analyst Michael Tyndall initiated coverage of Tesla on Thursday with a Reduce (or Sell) rating and $146 price target, implying a 33% drop in Tesla’s stock price. In response Tesla stock closed down nearly 5.5% on Thursday, with shares shedding 18.9% in the past month.
Tyndall praised Tesla as an innovator in the space, one unburdened by legacy costs holding down its expansion in the EV sector, which Tyndall wrote is definitely a growth sector. But while its reputation as an innovator is warranted, more than half of HSBC’s model for future cash flows is based on initiatives that likely won’t see profits until the end of the decade.
“We see considerable potential in Tesla’s prospects and ideas, but we think the timeline is likely to be longer than the market and valuation is reflecting. Hence the Reduce rating,” Tyndall wrote.
HSBC views Tesla…
2023-11-09 16:16:19
Original from finance.yahoo.com
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