Citi Cuts Price Target For $TSLA — Says Stock Can Hit $36 in ‘Bear Case’ Scenario
Yesterday it was Morgan Stanley, today it’s Citi. Please explain to me why these analysts feel it necessary to shill for headlines with nonsensical bear case scenario extreme price targets? Let me be clear, Citi still has a price target of $191 on TSLA, but thinks the stock can hit $36 if everything goes wrong....MORE
I think Citi has a greater chance of going to zero than TSLA to $36. After all, should we get another credit crisis and Citi is forced to mark down assets to extremely low levels, they probably won’t have enough capital to remain solvent.
Here are the notes.
Source: CNBC
Morgan Stanley caused a stir on Tuesday when star auto analyst Adam Jonas put out a “bear case” scenario that envisioned Tesla’s shares plummeting to just $10.
And now a Citigroup Global Markets analyst is out with another shocking scenario for Elon Musk’s electric car maker.
Citi’s Itay Michaeli sees increasing probability the shares plummet more than 80% to $36.
“Maintain sell/high risk as the risk/reward still appears negatively skewed despite the recent capital raise and stock pullback, mainly on lingering demand/FCF (free cash flow) concerns,” the analyst said in a note late Tuesday.
“Reducing estimates to reflect the recent capital raise, Q1 results/guide and our own inputs.”...
Tesla $197.86 down $7.22 (-3.52%)
Also from The Fly:
Update on My Trading Positions
Oil has collapsed and is heading by way of the dodo-bird. I am the DRIP God....MORE
I bought TLRY this morning.
My CRON is working fine — bought it yesterday.
DTEA — sitting and waiting for some cannabis news.
SILK — new highs, dead volume.
ROKU — just bought yesterday, looking for hundy roll.
FAZ-mobile — goes fast when it gets going. It’s gonna get going soon.
GROW — I forgot why I’m long.
TVIX — panic hedge.