Tesla's stock jumps after stock split news, Baird analyst maintains neutral rating and price target – MarketWatch
Shares of Tesla Inc. TSLA, -3.11% ran up 6.1% in premarket trading Wednesday, after falling 7.7% amid a 3-day losing streak, in the wake of the electric car maker’s announcement of a 5-for-1 stock split. Analyst Ben Kallo at Baird reiterated the neutral rating he’s had on the stock since Jan. 9, while maintaining his price target of $1,658, which is about 21% above Tuesday’s closing price of $1,374.39. “We believe the stock split is a recognition of the fact that the market is increasingly influenced by individual investors, including those looking to gain exposure to next-generation transportation,” Kallo wrote in a note to clients. “The overnight share strength is indicative of investors electing to purchase stocks which are positioned to benefit from the current upgrade cycle for technology around transportation, renewable energy, and the software enabling both.” The stock has more than tripled (up 228.5%) year to date through Tuesday, while the S&P 500 SPX, -0.79% has edged up 3.2%.