More than 60% of securities analysts are now recommending that investors buy Tesla stock, the highest share since early 2015, according to data compiled by Bloomberg.
NEW YORK: Tesla Inc is getting a strong show of faith from a group that chief executive officer Elon Musk once blasted for doubting the company’s prospects: Wall Street analysts.
The electric-carmaker’s shares closed up 7.7% Wednesday, after Federal Reserve chair Jerome Powell signalled a slowdown in the pace of tightening as early as December, triggering a market-wide rally.
Despite the strength, Tesla’s stock recorded its biggest monthly drop since April, capping a rout that’s pushed it down some 37% since late September on concerns about a recession, rising interest rates and the ripple effects of Musk’s takeover of Twitter Inc.
But the scale of the slide has turned securities analysts increasingly bullish, wagering that the sell-off has run too far.
More than 60% are now recommending that investors buy Tesla stock, the highest share since early 2015, according to data compiled by Bloomberg.
And such ratings have been ratcheted up steadily this year, with at least two analysts upgrading the stock this month and several reiterating their bullish stance.
“The Tesla bulls I know are loading up at these levels,” said Catherine Faddis, senior portfolio manager at Fernwood Investment Management.
After hitting an all-time high in early November 2021, Tesla’s share price has been dragged down by interest-rate hikes that have hammered growth-stock valuations and by problems that have dogged the global economy since the pandemic.
Tesla has been contending with a supply-chain crisis and soaring costs of raw materials that are affecting the entire auto industry. — Bloomberg
