Shares of Tesla Inc.
rose 0.6% in premarket trading, as the second-most bearish analyst on Wall Street raised his price target, in the wake of the electric vehicle market leader’s $5 billion stock offering. J.P. Morgan’s Ryan Brinkman, who has rated Tesla underweight since at least February 2018, lifted his target to $90 from $80, with the new target 86.2% below Tuesday’s record closing price of $649.88. He said he recommends investors “NOT raise their holdings in Tesla” to approximate its weight in the S&P 500
when it enters the index on Dec. 21, “because Tesla shares are in our view, and by virtually every conventional metric, not only overvalued but dramatically so.” He said the shares would be “grounded in an analysis of fundamentals” only if analysts were valuing the company on earnings prospects beyond the next five years. Of the 36 analysts surveyed by FactSet, the only analyst more bearish than Brinkman is GLJ Research’s Gordon Johnson, who has a $40 price target. The average rating is hold, and the average price target is $406.55. Tesla’s stock has rocketed 676.8% year to date through Tuesday, while the S&P 500
has gained 14.6%.