New Street cuts Tesla to Neutral, sees catalysts being a year or more out - InvestingChannel

New Street cuts Tesla to Neutral, sees catalysts being a year or more out

Before the market opened, New Street analyst Pierre Ferragu downgraded Tesla (TSLA) to Neutral from Buy with an unchanged one-year price target of $800. During an interview with CNBC following the downgrade, the analyst said that his fundamental view on Tesla shares remained largely the same, but the price changed fast. Ferragu said he sees the Model Y disrupting the Model 3, but noted that the Y has better margins. The analyst also believes the Gigafactory in Germany will take a lot longer than in China. He also said that Tesla’s insurance business could add 30% to the company’s profit. He added that it would be difficult to get a fundamental catalyst from here, and felt unlikely anything in the next year was going to make him more confident, as all the catalysts were over a year out. He felt fair value over the next year was $800, but added that his longer term price target was $1,400. The analyst recommended buying after the short squeeze is over, on a pullback.