Tesla Inc (NASDAQ:TSLA) shares advanced by their largest amount in a month on an upgrade from Credit Suisse, after the carmaker had fallen to its lowest valuation since the beginning of the pandemic.
The electric-vehicle giant soared 10.7% to US$936.72 overnight as the Swiss bank increased its recommendation to the equivalent of a ‘buy,’ while reiterating its US$1,025 price target – some 21% upside on its Friday close price.
Tesla’s share price decline in recent weeks made the shares “attractive” to investors, the bank’s analysts said.
Technology stocks, considered growth stocks, have taken a battering this year as safer investments including value stocks were favoured to help offset surging inflation.
But this has led to a spate of revisions by Wall Street analysts, with Netflix upgraded to ‘buy’ by Citi; Apple’s target price being bumped up by Goldman Sachs (NYSE:GS) to US$161 from US$142; Bernstein slashing Twitter’s target to US$40 from US$75, and Goldman cutting its price target on Robinhood Markets to US$15 from US$23.
Tesla, undoubtedly a growth stock, has seen its shares tumble 22% from the start of the year to the end of January, edging them close to the “oversold territory” and creating an ideal entry point for investors, Credit Suisse said.
The last time its shares took such a large decline in May, they then doubled in the following five months.
On a fundamental level, the analysts said they were “hard-pressed” to find another stock that "checks all the boxes as Tesla does" in the disruption, decarbonisation, and growth areas.