(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest post.) Thursday started with a rare sell-equivalent rating placed on Tesla. HSBC initiated coverage of the electric vehicle maker with a reduce rating and a price target that implies more than 30% downside from Wednesday’s close. Meanwhile, Evercore ISI placed tactical outperform ideas on Five Below and Target. Check out the latest calls and chatter below. 5:49 a.m. ET: Evercore ISI says buy Five Below and Target ahead of earnings Evercore ISI added Five Below and Target to its tactical outperform list ahead the companies’ earnings reports: On regarding Five Below, analyst Michael Montani said the company has “been able to buck the industry moderation trend, with positive traffic, comps and a constructive outlook likely for its discretionary core business into the all important holiday season (35% of CY22 Sales, 65% of profit).” Meanwhile, analyst Greg Melich said Target’s “near term comp pressures are well understood, while Target’s ability to manage earnings can drive EPS upside.” “With TGT trading near pre-pandemic levels and down 28% YTD, we believe that the stock reflects much of the bad news of a softer consumer backdrop, mix headwinds, and operational missteps over the course of the past year and a half,” he said. Target reports earnings next week. Five Below is slated to post results in December. — Fred Imbert 5:49 a.m. ET: HSBC initiates Tesla coverage at reduce HSBC says Tesla may have gotten ahead of itself. The bank initiated coverage of the electric vehicle giant with a reduce rating accompanied by a $146 per share price target. HSBC’s forecast implies more than 34% downside from Wednesday’s close. “As outsiders, we struggle to challenge the feasibility of the group’s ideas. So, our caution stems from the uncertainty around the timing and commercialisation of its varied ideas,” HSBC head of European automotive Michael Tyndall said. “We see considerable potential in Tesla’s prospects and ideas, but we think the timeline is likely to be longer than the market and valuation is reflecting.” “Tesla delivers but rarely adhering to the promised timelines,” he said. “Whether it is a function of overly ambitious timelines … or delays with Gigafactory licenses and applications, production delays appear to be becoming the norm.” Tesla shares have surged more than 80% this year. TSLA YTD mountain TSLA in 2023 — Brian Evans
Thursday’s analyst calls: One bank says sell Tesla, tactical retail trades
