高盛对TSLA和Frontier Communications FYBR动刀子了？

CrisisInvesting

高盛队TSLA动刀子了？

Stocks Are Hot!

Huge Analyst Calls: Tesla Slashed at Goldman;
By Investing.com (Garrett Cook)



TSLA
+6.90%
PINS
-0.37%
FYBR
-2.15%

Tesla
What happened? On Sunday night, Tesla (NASDAQ:TSLA) was downgraded to Neutral at Goldman Sachs with a $248 price target.

What’s the full story? Tesla is becoming repetitive and honestly rather boring. Musk is letting his ego get ahead of himself, but I digress.

Early Monday, scalpers jumped on the Sunday night downgrade to spread the intel at 4AM then again at 6AM. Goldman didn’t blow anyone's socks off when they stated the driver of the downgrade as:

…we believe the stock now better reflects our positive long-term view of the company's growth potential and competitive positioning.

Goldman believes that their valuation - at 187x enterprise value to free cash flow (EV/FCF) for the next 12 months (NTM) - continues to be somehow reasonable.

Neutral at Goldman is described as follows:

Any stock not assigned as a Buy or a Sell on an Investment List with an active rating (i.e., a stock that is not Rating Suspended, Not Rated, Coverage Suspended or Not Covered), is deemed Neutral.

How did the equity react? Tesla shares, predictably volatile on days ending in “Y,” traded lower on the first premarket execution, at a $253 handle, down to a $249 handle. And then, you guessed it, they rebounded higher into 6AM and subsequently 7AM - as a way to trap retail traders.

Shares sold through the day to close at the $241 handle. Hilariously, it was the week's low before they rocketed upwards through the end of the week to end in a $261 handle.

Frontier Communications
What happened? On Tuesday, Wolfe initiated Outperform on Frontier Comms (NASDAQ:FYBR) with a $27 price target.

What’s the full story? Wolfe is trying to beat the rush in the door to pick up Frontier Comms equity. The firm wrote:

Valuation - the ground-floor of a multi-story build: If Frontier never laid down another fiber cable, the value of today's fiber arguably equals the EV ($1.2B TTM EBITDA x 11 = $13B) before attributing value to future customer/pricing gains & copper's optionality as upgrade feedstock. FYBR's 36% / $2.3B YTD equity value decline vastly overstates build cost pressure: +$100/home x 5M homes to upgrade destroys $500M of value. Despite our concern that costs may have yet to peak, onetime build cost increases are far less meaningful to ROIC than penetration & pricing.

As Wolfe also noted, this rather extreme bullish outlook hinges upon FYBR advantage in service for continually increase consumer data demands.

Outperform for Wolfe is described as:

The security is projected to outperform analyst's industry coverage universe over the next 12 months.

How did the equity react? FYBR saw the usual headline volatility push the equity up $1.80 to a high $17 handle. Shares ended the day up around 8% to $17.53.