Tesla’s stock pulls back, as Canaccord’s Dorsheimer downgrades to ‘lock in profits’

Tesla’s stock pulls back, as Canaccord’s Dorsheimer downgrades to ‘lock in profits’

Shares of Tesla Inc. sank 8.0% in premarket trading Wednesday, after analyst Jed Dorsheimer at Canaccord Genuity said he was “taking our foot off the accelerator,” as downgraded the stock. The stock had soared 36.4% over the past two sessions, rocketed 59% amid a six-session win streak through Tuesday and has now nearly doubled (up 95.1%) in 2020, while the S&P 500 has gained 3.0% this year. Dorsheimer lower his rating on the stock to hold, after being at buy since Feb. 11, 2019, saying he believes “patient investors” will likely get a more attractive entry point. He reiterated his $750 stock price target, which is below current prices. “Following an electrifying run in 2020, we are downgrading shares of Tesla to hold as we see a balanced risk reward for investors to lock in profits,” Dorsheimer wrote in a note to clients. “Just as we observed a clear buy signal coming into 2020, we see the risk of China’s coronavirus as a clear headwind to the Shanghai facility, suggesting a more pragmatic position.”

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