Tesla target lowered at JMP after analyst makes cut to delivery estimates - MarketWatch

JMP Securities analyst Joseph Osha lowered his price target on shares of Tesla Inc. to $840 from $1,060 on Tuesday, though he maintained a market outperform rating on the stock. Osha also reduced his 2020 delivery estimates to 433,000 units from 523,000, citing a negative impact from the COVID-19 outbreak. "For Q1, we think more of the reductions likely flowed from Asia and Europe, with the situation reversing in Q2 and the U.S. market leading the decline," he wrote. "We assume that Tesla will be allowed to restart production in early May, both in Fremont and Nevada, although we do not believe the company will move back to full output until later in the year." Osha expects "sharp gross margin declines" in the first half of the year and assumes that while the company's labor costs will decline, Tesla won't take "any more dramatic action" to trim its fixed costs. Tesla shares are off 1.1% in premarket trading Tuesday. The stock has lost 25% over the past month as the S&P 500 SPX, +0.23% has risen 11%.

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