JMP Securities analyst Joseph Osha downgraded Tesla Inc.’s stock
to market perform from market outperform Tuesday, a day before the company is due to report second-quarter earnings. “The company’s valuation now slightly exceeds the $1,500 price target that we established recently, and we believe that any intermediate-term success that Tesla might discuss during its earnings call tomorrow is now fairly reflected in the stock price,” Osha wrote. “We continue to believe that Tesla can become a $100 billion car company by 2025, but we cannot arrive at a reasonable basis for arguing that the stock should be valued above current levels, even considering our fundamental outlook.” He said that there’s room for some upside to consensus second-quarter margin expectations but also argued that “investors face challenges in earning additional returns from here.” Osha removed his price target in conjunction with the downgrade. Tesla shares are up 0.8% in premarket trading Tuesday, and the stock’s up 64% over the past month as the S&P 500
has risen about 5%.