Barclays analyst Brian Johnson lowered his price target for Tesla (TSLA) to $150 from $192 and reiterates an Underweight rating on the shares.
The stock closed yesterday up $1.16 to $189.86.
The new price target reflects a higher probability of Tesla "stalling as a niche automaker," Johnson tells investors in a research note. Model 3 demand is "stagnating" in the U.S., the company still doesn't have a path to significant auto profitability and solar storage installations have declined sequentially over the past two quarters, says the analyst. Further, Johnson believes Elon Musk's efforts to "spring excitement" around Tesla's full self-driving capabilities was broadly met with the "appropriate skepticism."
The analyst expects more investors to focus on Tesla's near-term fundamentals of demand, profitability, and cash generation.
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