Bernstein Analysts Question Tesla's Valuation In Comparison To Warren Buffett-Backed BYD
Portfolio Pulse from Benzinga Neuro
Bernstein analysts have expressed skepticism about Tesla Inc.'s (NASDAQ:TSLA) high market valuation compared to BYD Co Ltd (OTC:BYDDF), especially given the companies' similar financials. Tesla's market cap is approximately $730 billion, despite a decline in earnings, while BYD, with profits doubling, is valued at $84 billion. Bernstein set a $150 price target for Tesla, suggesting a 40% drop, and a $46 target for BYD, indicating a 60% increase. They believe the valuations of Tesla and BYD will likely converge in the future.
November 28, 2023 | 5:24 am
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NEGATIVE IMPACT
Bernstein analysts predict a potential 40% decrease in Tesla's stock price, setting a target of $150 per share, due to challenges in justifying its current valuation compared to BYD.
The negative impact on Tesla's stock price is based on Bernstein analysts' price target, which suggests a significant undervaluation of BYD's achievements compared to Tesla's overvaluation. The analysts' view could influence market sentiment and lead to a decrease in Tesla's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Bernstein analysts set a $46 price target for BYD, indicating a potential 60% increase, based on the company's strong financial performance and doubling profits.
BYD's stock is expected to rise based on Bernstein analysts' positive outlook and price target, reflecting the company's robust financial growth and potential undervaluation. This could attract investor interest and drive up BYD's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 90