Big Moves | "Unrealistic Sales Ambitions"? Tesla's Rating and Target Price Both Significantly Lowered!

Jefferies: Downgrades Tesla's rating from "Buy" to "Hold", lowers target price by 19.5% from $230 to $185

If calculated at the latest closing price of $160.67, this price implies a 15% upside!

The bank said that Tesla's strategy of scaling growth above profitability has its "logic and resetting expectations", but it also raises a question of whether its profit advantage is structural or time-lagged. The company's first-quarter performance did not confirm that demand elasticity offset lower prices.

Progress on costs may take longer to materialize, and a "hold" rating is justified until Tesla re-adjusts its performance and governance.

Bernstein: Maintains "Underperform" rating for Tesla, target price of $150

If calculated at the latest closing price, this price implies a 7% downside.

The bank believes that Tesla's recent decision to lower prices shows that its "sales ambitions are unrealistic" and demand is weakening. Tesla has already lowered prices and "the impact of the price cut is short-lived as the company seems to still be struggling to create enough demand." The bank expects first-quarter demand for deliveries to be around 1.2 million vehicles, below the automaker's target of 1.8 million vehicles.

"Fundamentally, we believe Tesla's sales targets for Tesla and Y are unrealistic - about 3-4 million units per year, or nearly 50% of the global market share in its highly fragmented sub-segments.

Tesla's sales target is for a total of 3-4 million units for Tesla and Y, which would account for nearly 50% of the global market share in its category - in our view, this is unrealistic given the highly fragmented global auto market and a large portion of potential buyers who remain skeptical of electric vehicles and are unlikely to switch from internal combustion engines to electric vehicles in the short term."

Therefore, the company will be forced to cut prices to stimulate demand in pursuit of these lofty goals. Further price cuts and expected downgrades could make the stock difficult in the short to medium term. The bank expects further price cuts in China and Europe in the second quarter.

JPMorgan: Raises Microsoft's target price by 3% from $305 to $315

If calculated at the latest closing price of $275.42, this price implies a 14% upside!

Montreal: Upgrades Microsoft's rating to "Outperform", target price of $347

If calculated at the latest closing price, this price implies a 26% upside!

Goldman Sachs: Maintains Buy Rating for Miniso, Included in Conviction Buy List, Raised to HKD 45

If calculated based on the latest closing price of HKD 32.3, this price implies a 39% upside potential!

Miniso announced a profit increase, with an expected adjusted net profit of at least RMB 400 million for the quarter ending in March, meaning a year-on-year increase of at least 2.6 times. The bank has raised its net profit forecast for the company for 2023 to 2025 by between 11% and 17%.