Although the U.S. market is powering higher, shares of Tesla (ticker: TSLA) may take a pause. Stock in the EV pioneer is up more than 100% over the past three months. It’s an incredible run, but analysts are feeling a little more nervous about valuation. Last week, Baird analyst Ben Kallo—a longtime Tesla bull—downgraded shares to the equivalent of Hold from Buy. Thursday, Morgan Stanley analyst Adam Jonas downgraded Tesla shares from the equivalent of Hold to Sell. He increased his price target for the stock, however, from $250 to $360.
Tesla shares fell 3.6% Wednesday. Shares are down another 2.3% in premarket trading Thursday. Sometimes investors feel forced to take some profit.
Shares in XPO Logistics (XPO) are soaring in premarket trading, with a gain of more than 17%. The company announced it was looking at “strategic alternatives.” That means management is willing to take steps, such as selling assets or pursuing a merger, because they are unhappy with the company’s valuation.
“We continue to trade at well below the sum of our parts and at a significant discount to our pure-play [logistics] peer,” said CEO Bradley Jacobs in the company’s news release. “That’s why we believe the best way to continue to maximize shareholder value is to explore our options.”