This analyst sees Tesla shares 'tumbling' after Wednesday's earnings - InvestingChannel

This analyst sees Tesla shares ‘tumbling’ after Wednesday’s earnings

GLJ Research analyst Gordon Johnson believes Tesla’s Q1 operational cash flow will miss estimates by 50% when the company reports on Wednesday night, sending the shares “tumbling.” The analyst keeps a Sell rating on the stock with a $67 price target. Tesla in afternoon trading is up 2% to $1,005.86. Johnson expects Tesla to report Q1 operating cash flow of $1.14B, below the consensus estimate of $2.31B. Assuming limited to no growth, at a market capitalization of $1.03 trillion , investors are currently paying 285.4 times Tesla’s yearly run-rate operational cash flow, Johnson tells investors in a research note. “At risk of stating the obvious, given Toyota trades at 11.4x its operational cash flow, we feel this is yet another metric that shows TSLA is GROSSLY overvalued,” writes the analyst.

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