Berenberg analyst Adrian Yanoshik turned bullish on Tesla Inc. on Monday, citing improved valuation as concerns that Chief Executive Elon Musk will be distracted by his Twitter purchase have already been priced into the stock. At the same time, Yanoshik backed away from his bullish call on General Motors Co.
GM,
+4.03%,
a day before the auto maker reports fourth-quarter results, saying he was looking for better levels to buy the stock as momentum has faded.
Yanoshik raised his rating on Tesla to buy, while cutting his stock price target to $200 from $255. His new price target implied about 12% upside from current levels. “Tesla’s valuation has sufficiently returned to earth to turn us positive on the shares,” Yanoshik wrote in a note to clients. “Technical pressure from CEO Elon Musk’s Twitter purchase and China disruption risks now appear to be loaded into the share price, while we think Tesla’s 1 March investor day offers near-term catalyst potential.” The electric vehicle maker’s stock
TSLA,
+11.00%
rose 0.3% in premarket trading, reversing from earlier losses of as much as 2.5%. While it has rocketed 64.6% since closing at a 2 1/2-year low of $108.10 on Jan. 3, the stock was still down 22.2% over the past three months while the S&P 500 index
SPX,
+0.25%
has gained 4.3%. Yanoshik said Tesla’s price cuts on EVs, which had put pressure on the stock when announced, represent an “investment in growth,” which he believes re …