Even though UBS bank doubled Tesla price target shares, it recommends selling them
Current market value is said to be overstated.
If you wanted to purchase American car manufacturer’s shares, you would have to pay at least $570, which is more than double of price from October 2019. Patrick Hummel, analyst at UBS AG, recommends to investors to sell Tesla shares.
UBS calculated Tesla price target to $410, which is almost 30% lower to the current market value. According to Hummel, there’s no reason for Tesla shares to grow in short term as “all positives are perceived as matter of course”. Hummel says that Tesla grows too fast – faster than usual for industrial companies.
Tesla recently made a record-high market value among American car manufacturers and surpassed the level of $100 million. Tesla now has 17 recommendations for sale. There are 11 analysts followed by Bloomberg who recommend keeping shares and only 9 analysts recommend to purchase Tesla shares.
