It's time to cash in on big Tesla gains, according to these analysts who downgraded the automobile maker's stock to neutral from overweight.
Now that U.S.-Iran tensions have cooled a bit, it may be time to revisit predictions from some strategists last year that said equities are primed for big gains in the first quarter.
That brings us to our call of the day from Baird analysts Ben Kallo and David Katter, who have downgraded Tesla to a neutral rating after a longtime overweight, or bullish position, on the shares. In a note to clients, they said it is time to cash in on some of the big gains the automobile maker has seen.
They said risk/reward for Tesla shares is looking more balanced following recent gains—up 113% in the last 6 months, nearly 18% year-to-date. And while some analysts have been turning increasingly optimistic on the company’s future, they think that process may be in the latter stages. The market The Dow DJIA, +0.62%, S&P SPX, +0.51% and Nasdaq COMP, +0.63% are off to a strong start, with European stocks SXXP, +0.31% on track for a record session after Wednesday’s upbeat day on Wall Street. Asian markets ADOW, +1.52% also rebounded. Gold GC00, -0.35% is pulling back from what’s been a big run this week.
If you had bought Apple shares exactly one year ago you would have doubled your money. And that excludes dividends. Quite astonishing considering the size and scale of the business. pic.twitter.com/yRzehldC1q
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