As Citi upgrades to Neutral on better risk/reward, Tesla stock rises.
Shares of Tesla (NASDAQ: TSLA) Are up almost 2% in pre-open Wednesday after Citi analysts upgraded to Neutral from Sell.
The analysts believe the valuation is more justified now after the recent pullback in Tesla stock that has created a more balanced risk/reward in the near term. The analysts also raised the price target to $176 per share, from $141.33, to reflect a higher multiple.
Analysts highlighted the three key points:
- Some of the prior baked-in expectations that Citi didn’t agree with are out of stock;
- Citi is slightly above consensus for Q4-2024E EPS despite reduced near-term EPS estimates; and
- Macro/competitive concerns are likely to remain an overhang with capacity rising.
“In a hard landing scenario Tesla’s LT competitive position likely also improves and is potentially further enhanced by IRA,” they added in a client note.
The analysts also weighed in on the discussion of what would need to happen for Citi to get more bullish.
Tesla’s stock price is down over 50% YTD.
TESLA TECHNICAL ANALYSIS
In the daily chart, Tesla is currently trading in a down channel.
It is currently trading below all MA; RSI is in the selling zone which indicates bearishness.
Its immediate resistance is at 176.57 and its support level is at 165.57
HOW TO TRADE IN THIS WEEK
Currently, the market is trading in a down channel, the market is falling continuously by breaking the previous low, the market is indicating downside movement remains bearish on it until any trend reversal.