Tesla price target lowered to $115 from $130 at JPMorgan

JPMorgan lowered the firm’s price target on Tesla to $115 from $130 and keeps an Underweight rating on the shares. The analyst slashed estimates and the price target for Tesla after updating for the company’s Q1 deliveries, which tracked materially softer than its expectations. The delivery report “could spell trouble for investor confidence in the company’s long-term growth outlook that is so critical to sustaining the stock’s rarified valuation multiple,” the analyst tells investors in a research note. The firm says that while its price target implies 31% downside from yesterday’s close, Tesla shares “could fall much further still” should the company not be successful in quickly restoring unit volume and revenue growth. JPMorgan thinks investors could elect to no longer assign the stock its “still hyper growth company valuation multiple.”