JPMorgan reiterates Underweight rating on Tesla stock
Yahoo Finance Live’s Brian Sozzi breaks down a JPMorgan analyst’s Underweight rating and $120 price target on Tesla stock.
BRIAN SOZZI: Before we head to break, let's follow a bearish call on Tesla from JPMorgan's Ryan Brinkman. Brickman is reiterating an underweight rating on Tesla, citing disappointment in the company's latest quarterly results and outlook.
Says Brinkman, "Tesla's softer trend and below consensus adjusted automotive gross margin comes before the impact of large price reductions. That will primarily be felt beginning in the first quarter. As such, we view margin trajectory negatively and expect that consensus margin expectations are likely to decline." Brinkman's $120 price target on Tesla assumes 32% downside from current levels.