Tesla Motors (TSLA) Correction 'Overdue' Says BofA/ML

September 23, 2013 10:46 AM EDT
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Price: $244.73 +0.40%

Rating Summary:
    17 Buy, 13 Hold, 9 Sell

Rating Trend: = Flat

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    Up: 30 | Down: 30 | New: 23
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BofA/Merrill Lynch maintained an Underperform rating on Tesla Motors (NASDAQ: TSLA) with a price target of $45.00. Analyst John Lovallo thinks Tesla's Gen 3 would need to be among the best selling vehicles in the world to drive enough volume to support valuation. Lovallo said Tesla's current valuation implies 2020 sales of 628 thousand vehicles, 500 thousand attributable to Gen 3, planned to go on sale in 2017. In his view, this doesn't seem likely, and a correction is "long overdue."

Lovallo also noted that institutional ownership of Tesla has fallen about 66% compare to January, meaning retail is playing an increasing role.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $183.39 yesterday.

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