"After three years of saying just wait for it, Goldman Sachs says now is the time to go in on Tesla Motors.
The investment banking giant upgraded its recommendation on the stock from “Hold” to “Buy” while maintaining a price target of $250 Wednesday—sending Tesla TSLA 2.36% shares up in early trading.
The last time Goldman gave Tesla a Buy rating was in February 2013—with a price target of $45. Goldman held onto its neutral rating in recent months as well, saying it was seeking a lower entry point. Tesla is currently trading at about $208."
TSLA shares rallied about 4% in today’s trading as a
result. However, as soon as the market closed, the following news was released:
"Tesla Motors (TSLA) announced on Wednesday an underwritten registered public offering of about $2 billion shares of its common stock to accelerate the ramp of the Model 3.
The electric automaker is offering about $1.4 billion in shares. CEO Elon Musk will sell the remaining shares to "cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options."
Shares of Tesla were down more than 2 percent in after-hours trading."
Goldman Sachs proves time and time again that their attempts to influence retail investors is most often completely self-serving.
Goldman Sachs proves time and time again that their attempts to influence retail investors is most often completely self-serving.
Can we agree that this is so of most “analyst” pronouncements? No one has a crystal ball and self-interest rules this game. GS is no different than others. Once you see past the rhetoric, you’re less likely to be had.
RGB As the appearance of the bow that is in the cloud in the day of rain so was the appearance of the brightness round about
Sell-side research is mostly for entertainment purposes.
Has Goldman Sachs said they maintain any kind of firewall between their sell-side analysts and investment bankers? If they have not, no reason to pay attention to GS analysts. Value Line or Morningstar would serve you far better. At least they will be wrong impartially.
I have to say that was a funny string of 7 words. Well said.
Of course, I’m biased based on my disdain for analysts. It is not that I dislike what they do. I hate the impact of what they do and the obvious conflict of interest. That is, they can downgrade a stock for the purposes of picking it up cheaply and then change their mind. This stirs my ire.
