Gary Black, the managing partner of The Future Fund LLC, tweeted his views on the factors affecting the pre-market movement today.
First, he pointed to the hawkish tone of the Federal Reserve’s meeting on Tuesday. Second, he talked about Target Corporation’s (TGT) big Q1FY22 earnings miss, which is rightly making waves in the market.
It was his third factor that came in as a surprise. Black disclosed that Piper Sandler analyst Alexander Potter had revised Tesla’s (TSLA) target price lower!
As per his tweet, Potter has cut the price target on Tesla to $1,035 from $1,260, which implies a 36.9% upside potential to current stock price levels. Furthermore, the analyst has also reduced the earnings per share (EPS) forecast for 2022–2023 in his model due to various headwinds noted in the report.
Most of the audience criticized Black for the first point, which was not a notable event affecting today’s market movement. Notably, Target Corp.’s miss was one of the major factors influencing the market’s downfall, adding fuel to the fire created by peer Walmart’s (WMT) weak results.
Commenting on the third point, a few stated that if an uptick in target price by Potter previously did not materially impact Tesla’s stock price movement, then today’s downward price revision should also not impact its price. Nonetheless, Tesla’s fans continued to show their support for the company.
Tesla stock has taken a beating since Musk’s Twitter (TWTR) disclosure and buyout offer and has lost almost 35% since. On TipRanks, the average Tesla price target given by 29 analysts stands at $967.36, which implies almost 30% upside potential from current prices. This average is based on 14 Buys, ten Holds, and five Sells.
Discover new investment ideas with data you can trust
Read full Disclaimer & Disclosure
