Bernstein lowers Tesla’s stock price target to $120 from $150 and assigns an ‘Underperform’ rating.
The analyst remarks, “During the quarter-to-date, Tesla has encountered subdued demand in China/Europe and limited production capacity for the US Model 3.”
Additionally, Bernstein has revised down its delivery estimates. For the first quarter, projections have been decreased to 426,000 units from 490,000 (reflecting a 1% year-over-year increase), and for the entire year of 2024, to 1.98 million units from 2.12 million.
This adjustment is more conservative when compared to consensus estimates of 468,000 for Q1 and 2.06 million for the entire year.
“We are also introducing an FY’25 EPS estimate of $2.22 (compared to consensus of $3.69). We are reducing our FY 24 GAAP EPS from $2.31 to $2.06 compared to consensus of $2.63.”
“We observe that the consensus FY 24 earnings have decreased approximately 60% from around $6.53 in October 2022. Additionally, we are introducing a FY 25 forecast of 2.18 million units and EPS of $2.22, compared to a consensus of 2.41 million units and EPS of $3.69.”
“Despite the year-to-date underperformance of the stock, we find it challenging to identify a catalyst for TSLA. We anticipate modest growth in 2024 and 2025, which raises doubts about the company’s growth narrative.”
