Tesla Stock Upgraded by Hong Kong Analyst: 3 Things You Need to Know

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

Now here's something you don't see every day. On Monday, a formerly unheard-of stockpicker picked shares of Tesla (NASDAQ: TSLA) to outperform the market. The analyst in question, First Shanghai Securities (which despite the name, is actually based in Hong Kong), announced this morning that it is initiating coverage of Tesla stock with a buy rating, on the theory that CEO Elon Musk's electric-car venture "leads the global [electric vehicle] revolution."

According to data from StreetInsider.com, which reported the new rating this morning, Tesla stock is the only U.S.-listed stock First Shanghai has ever publicly recommended. So far, that's really all we know about the recommendation. But here are some things that might have influenced the analyst's decision -- and that should definitely be on investors' radar.

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Source: Fool.com