Two New Wall Street Analyst Updates, One of Which is Shocking
Two new analyst updates for Tesla today, and two analysts upgrading their ratings. Erste Group went from “sell” to “hold,” and, more notably, JPMorgan went from “underweight” to “neutral,” with the analyst raising the price target from $145 to $475 in the blink of an iPad.
Wall Street analyst updates
The Erste Group update notes potential for earnings growth this year but also points out that valuation is holding back appreciation. That’s fair enough, but one wonders if the analyst is getting behind events here. It’s too late to give upgrades and complain about valuations when the stock has already appreciated.
Moving on to the real headshaker here. The JPMorgan update refers to Tesla as being at the “forefront of physical AI,” entering markets with significant total addressable market (TAM) potential, and having “unmatched” advantages due to its scale and vertically integrated model.
There’s talk of an earnings inflection point, and most staggering of all, the company deserves the benefit of the doubt with its growth catalysts underappreciated.
What it all means to Tesla investors
Now, I did a roundup of Wall Street analyst updates after the last earnings report, and I don’t remember JPMorgan discussing any of these things back then. Not much has changed since then that might create a Eureka moment in understanding. So how did we get here, and why is a JPMorgan analyst waving a chequered flag with $475 on it instead of $145?
It’s not that the latest update doesn’t make sense, because it does, but the question is what made the Wall Street firm, whose investment research and investment banking interests are supposed to be separated by Chinese Walls, suddenly raise its price target by so much, and why was it so low previously?
For reference, JPMorgan Chase is now underwriting the SpaceX IPO, after previously being at loggerheads with Tesla, following the bank’s accusation that Tesla was in breach of contract over warrants sold to the bank. Moreover, its CEO Jamie Dimon has been pitching the SpaceX IPO to its wealthy clients.
All of which begs the question of whether investors should rely on JPMorgan research if it’s going to be so, speaking charitably here, so inconsistent? Perhaps not on Tesla, but it’s unfortunate because the firm clearly has some excellent analysts, not least Steve Tusa in industrials.
However, the key point here is to rely more on independent analysts with credible track records.
Two New Wall Street Analyst Updates, One of Which is Shocking
Two new analyst updates for Tesla today, and two analysts upgrading their ratings. Erste Group went from “sell” to “hold,” and, more notably, JPMorgan went from “underweight” to “neutral,” with the analyst raising the price target from $145 to $475 in the blink of an iPad.
Wall Street analyst updates
The Erste Group update notes potential for earnings growth this year but also points out that valuation is holding back appreciation. That’s fair enough, but one wonders if the analyst is getting behind events here. It’s too late to give upgrades and complain about valuations when the stock has already appreciated.
Moving on to the real headshaker here. The JPMorgan update refers to Tesla as being at the “forefront of physical AI,” entering markets with significant total addressable market (TAM) potential, and having “unmatched” advantages due to its scale and vertically integrated model.
There’s talk of an earnings inflection point, and most staggering of all, the company deserves the benefit of the doubt with its growth catalysts underappreciated.
What it all means to Tesla investors
Now, I did a roundup of Wall Street analyst updates after the last earnings report, and I don’t remember JPMorgan discussing any of these things back then. Not much has changed since then that might create a Eureka moment in understanding. So how did we get here, and why is a JPMorgan analyst waving a chequered flag with $475 on it instead of $145?
It’s not that the latest update doesn’t make sense, because it does, but the question is what made the Wall Street firm, whose investment research and investment banking interests are supposed to be separated by Chinese Walls, suddenly raise its price target by so much, and why was it so low previously?
For reference, JPMorgan Chase is now underwriting the SpaceX IPO, after previously being at loggerheads with Tesla, following the bank’s accusation that Tesla was in breach of contract over warrants sold to the bank. Moreover, its CEO Jamie Dimon has been pitching the SpaceX IPO to its wealthy clients.
All of which begs the question of whether investors should rely on JPMorgan research if it’s going to be so, speaking charitably here, so inconsistent? Perhaps not on Tesla, but it’s unfortunate because the firm clearly has some excellent analysts, not least Steve Tusa in industrials.
However, the key point here is to rely more on independent analysts with credible track records.