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Bernstein maintains his bullish stance on Tesla, though the electric vehicle company’s valuation seems more reasonable given the recent setback. Analyst Tony Sacconaghi acknowledged that Tesla’s valuation is attractive compared to some high-growth tech stocks and trades at lower multiples than Ferrari. He cited the stock’s 41% underperformance since early October and 48% pullback this year as a reason to re-rate the stock. Sacconaghi sees current risks to corrections, especially if the broader macro environment continues to weaken. “Given TSLA’s drag YTD, we see the current risk/reward on the stock as still modestly negative, given Tesla’s elevated absolute valuation and the risk of a downward correction amid potential demand challenges,” he wrote. “We’re also concerned about the potential for broader market pressure amid higher rates and slower consumer spending, which would disproportionately affect high-value stocks like TSLA.” A long-term Tesla bear maintained its $150 price target on the stock, saying the company’s increase in cost per share and changes to its discounted cash flow model indicate $120 is a fair value. The price target suggests the stock could fall another 19% from Monday’s close. — CNBC’s Michael Bloom contributed reporting
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