In the course of just under two weeks, J.P. Morgan’s Tesla analyst Ryan Brinkman increased his price target for Tesla from $195 to $308 and then reversed course back to $195 this morning, all while keeping an underweight rating. Therefore, we are incorporating into our valuation the real possibility the equity will be taken out at $420 per share.”Brinkman had assigned a 50% probability to Tesla going private at $420. He used the difference between his $195 price target and the $420 takeout price ($225) and applied 50% to it. Clearly, Musk’s tweets oversold where he was in the process to take Tesla private . $195 price target calculationFor background, Brinkman uses a combination of discounted cash flows and 2020 multiple-based analysis to determine his $195 price target.

Source: Forbes August 20, 2018 17:51 UTC