Tesla (TSLA) PT Lowered to $394 at JMP Securities

JMP Securities analyst Joseph Osha lowered the price target on Tesla (NASDAQ: TSLA) to $394.00 (from $406.00) while maintaining a Market Outperform rating.

The analyst comments "We are still buyers of the stock – current challenges do not change the underlying competitive story, in our opinion. It is worth reiterating that our investment stance on Tesla has always been based on the potential the company has to make competitive gains over time. The undeniably challenging environment that Tesla faces at the moment is not enough to impact our fundamental stance on the company and its prospects. Our methodology continues to be based on 2020 target multiples of 2.5x EV/Revenue, 15x EV/EBITDA, and 35x price/free cash flow, discounted back to the present at 10% per year. We note that 10% is higher than the 8% discount rate we normally use, which reflects the relatively greater level of risk that we associate with an investment in Tesla."

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