TSLA stock has had an impressive run throughout 2020, and today, the stock soared again after it got an upgrade from JMP Securities. The firm upgraded the rating of the stock to ‘outperform’ and stated that due to the current selloff in stocks, it could be a good time to buy Tesla Inc (NASDAQ:TSLA) at a discount.
Bulls are Back
TSLA stock rose by 7% this morning to $801, having previously increased by 11% on Monday. JMP seems to be quite bullish on TSLA stock, setting the price target to $1,060 a share, which is one of the highest among Wall Street firms.
The firm agreed that the current earnings multiples might seem a bit expensive, but argued that many investors might be willing to buy the stock at lower multiples even if it is unprofitable. JMP went on to state that the current pullback in the market due to the coronavirus outbreak could prove to be the right time for investors to acquire Tesla stock.
Since February 19, TSLA stock has lost as much as 20%. The S&P 500 recorded declines of 8.50% during the same period.
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On Monday, Tesla stock performed strongly as well, managing to rebound from the slump it had gone through at the end of February. The surge in the stock on Monday is possibly due to the emergence of a report that claimed that Tesla’s sales in the North American territory in the first quarter are going to be strong.
The report claimed that it could be just as strong as the fourth quarter sales figures, and that might have created optimism around the stock. During February, Tesla stock declined by 20% from its all-time high, and it remains to be seen if the surge in TSLA stock this week will be a sustained one.
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