09:55 AM EDT, 03/21/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $40 to $235, based on a 2025 P/E of 55x, a justified premium to peers. We lower our adjusted EPS estimates to $3.00 from $3.90 for 2024 and to $4.25 from $5.50 for 2025 to reflect reduced sales volume and margin assumptions. TSLA shares have underperformed so far in 2024, a pullback we believe was overdue after the stock more than doubled in 2023, but we now see a slower production ramp-up for the Cybertruck and moderating sales growth for the Model Y and Model 3 relative to last year's 39% Y/Y increase. Given the high fixed cost nature of auto manufacturing, lower volumes should also weigh on margins, although declining battery costs are a silver lining. The good news is that the stock appears to have largely priced in these concerns and we see catalysts on the horizon with the likely unveiling of its Next Gen EV model and Roadster later this year. Additionally, TSLA should benefit from less competition, as traditional automakers moderate their EV growth plans.