Tesla’s stock is a hot commodity these days, and a recent selloff has one analyst changing his rating on the stock heading into February.
Credit Suisse analyst Dan Levy upgraded his rating on Tesla’s shares to Outperform from Neutral, with a stock price target remaining at $1,025, according to MarketWatch.
Levy changed the rating following a major selloff of the stock, which he says created “attractive” share price levels for investors, with “highly favorable” fundamentals on the stock.
In morning trading on Monday, Tesla’s shares rose 5.4 percent, following a period of two weeks where it had dropped off by about 19.4 percent.
In a note to clients, Levy wrote, “Tesla is a 1 of 1: we are hard-pressed to find a stock that checks all the boxes as Tesla does — attractive growth story (both top-line and EPS), disruption, decarbonization, etc.”
Levy continued, “Accordingly, with robust fundamentals ahead and with the stock having been caught in the market decline, we believe the stock should recover.”
Earlier this month, Morgan Stanley raised its price target on the automaker’s shares to $1,300, alongside a number of analysts who raised their price targets on Tesla after the company’s impressive Q4 and 2021 numbers.
“With less question around demand and much more question around supply of EVs, Tesla should be a key beneficiary — it has a product lead vs. others, and has taken the most holistic approach in EV supply,” said Levy to investors.
“Not only does Tesla not have to tackle the challenges that legacy [original equipment manufacturers] must address (margin dilution, manufacturing transition, distribution), but Tesla also has leads in supply/vertical integration, software, product simplicity, and capital availability,” wrote Levy.
At the time of writing on Monday, Tesla’s shares were trading for $927.85, up 9.6% percent from market open.
