JPMorgan analyst Ryan Brinkman lowered the firm’s price target on Tesla to $125 from $150 and keeps an Underweight rating on the shares. The analyst reduced estimates after Tesla reported Q4 deliveries which tracked modestly higher than his model “but seemingly at the cost of higher incentives, suggesting lower pricing and margin.” Moreover, Q4 deliveries were a miss versus consensus expectations, which, when combined with the drag from lower pricing, suggests potential downside to the consensus earnings per share estimate of $1.19 heading into the Q4 release, Brinkman tells investors in a research note. He expects multiple compression for Tesla as the company’s growth expectations moderate.
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