Tesla (TSLA, $935.28) shares downgraded by Morgan Stanley and Goldman Sachs analysts

Tesla  shares was downgraded by Morgan Stanley and Goldman Sachs.

Morgan Stanley analyst Adam Jonas lowered the rating on the electric carmaker’s stock to underweight from equal-weight. Jonas also slashed his price target to $650 from $680.

Although  Jonas was optimistic on  Tesla’s role in the adoption of electric vehicles, he also thought that the recent rise in the share price to over $1,000 may not capture some emerging risks. Many of these risks, according to  Jonas, are long-term, and could potentially affect fundamentals (growth and profitability) in a “materially negative way." The analyst said, "Among the many risks facing Tesla at this time, we would rank risks related to U.S.-China relations at the very top”.

Goldman Sachs analysts  downgraded Tesla to neutral , as shares were trading above their upwardly revised 12-month price target of $950. "We'd look to become more positive on Tesla stock again if we had more confidence in the near to intermediate term trajectory in fundamentals, or if valuation became more attractive," Goldman analyst Mark Delaney said. 

TSLA's Aroon indicator reaches into Uptrend on June 12, 2020

For traders, this could mean going long on the ticker or exploring call options in the next month. In 210 of 270 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.

Current price $935.28 is above $835.10 the highest resistance line found by A.I. Throughout the month of 05/12/20 - 06/12/20, the price experienced a +16% Uptrend. During the week of 06/05/20 - 06/12/20, the stock enjoyed a +6% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on May 26, 2020. Traders may consider buying the ticker or exploring call options. In 47 of 68 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 69%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where TSLA's MACD histogram became positive, in 32 of 44 cases, the price rose further within the following month. The odds of a continued Uptrend are 73%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 27 of 39 cases where TSLA's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 69%.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where TSLA declined for three days, in 198 of 280 cases, the price rose further within the following month. The odds of a continued Downtrend are 71%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 30 of 43 cases where TSLA's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 70%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 79%. During the last month, the daily ratio of advancing to declining volumes was 1.15 to 1.

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 36 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 96, placing this stock slightly better than average.

The Tickeron Valuation Rating of 91 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TSLA's P/B Ratio (18.86) is slightly higher than the industry average of (4.68). P/E Ratio (0.00) is within average values for comparable stocks, (38.46). TSLA's Projected Growth (PEG Ratio) (0.00) is slightly lower than the industry average of (0.85). Dividend Yield (0.00) settles around the average of (2.02) among similar stocks. P/S Ratio (4.01) is also within normal values, averaging (6.78).

The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.