Analyst Michael Cyprys downgraded the financial services company to equal weight from overweight, citing an uncertain earnings outlook that makes the risk-reward balance for shares appear less compelling. "Stock is down 30% month-to-date, but with limited visibility on multiple variables we are moving to the sidelines," he wrote in a Thursday note. "The SCHW investment thesis has been pushed out and we have less confidence around the timing of an improvement.
This translates to less earnings from monetizing cash as well as higher funding costs, he explained. He added that "cash sorting is not improving at the pace we had expected, and the regulatory landscape is set to intensify, which combined weigh on the earnings outlook, reduce capital return, and limit strategic flexibility." Along with the downgrade, the bank trimmed its price target by 32% to $68 a share. That target still reflects 23% upside from Wednesday's close.
Elon caused the biggest drop of TSLA stock of the history (-75%) selling billions$ of stock. And he did it in the middle of inflation crisis and Ukraine war crisis. Since then, the stock never recovered, and is still -50%. This is a dramatic moment for TSLA investors. ⚠️