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Our mission: Bringing practical business and technical intelligence to today's structured cabling professionals

For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

  • Design, Installation and Testing: We explain the bottom-up design of cabling systems, from case histories of actual projects to solutions for specific problems or aspects of the design process. We also look at specific installations using a case-history approach to highlight challenging problems, solutions and unique features. Additionally, we examine evolving test-and-measurement technologies and techniques designed to address the standards-governed and practical-use performance requirements of cabling systems.
  • Technology: We evaluate product innovations and technology trends as they impact a particular product class through interviews with manufacturers, installers and users, as well as contributed articles from subject-matter experts.
  • Data Center: Cabling Installation & Maintenance takes an in-depth look at design and installation workmanship issues as well as the unique technology being deployed specifically for data centers.
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On Wednesday, Adam Jonas, an Analyst at Morgan Stanley, Lowered His Price Objective for Tesla

On Wednesday, Morgan Stanley analyst Adam Jonas cut Tesla’s price target.

TSLA price target of Morgan Stanley analyst Adam Jonas was cut by 3.7% on Wednesday. There has been no change in his Buy-rating. Even though the price he had set for himself had only dropped by $100, it has stayed at $1,200.

As a result, investors may benefit from his examination of analysts’ thought processes on Wall Street. It has nothing to do with Tesla’s sales or lack thereof.

Prior to Tesla’s public statements, key numbers in the report were altered. Tesla (NASDAQ: TSLA) is expected to reveal its second-quarter delivery statistics next week—around July 2—if all goes according to plan. In a few weeks, the company will report its earnings for the third quarter.

During the second quarter, production was disrupted by Covid-19. From 316,000 to 270,000 units, Jonas decreased his delivery target in the second quarter.

If fewer shipments are made, the gross profit margin will be less. According to his new estimate, he has lowered it from 25.8% to 24.6% without regulatory credits.

In spite of this, the pricing aim remained unchanged. The rising WACC (weighted average cost of capital) had a significant role in this development.

Despite this, Jonas decided to keep his previous objective of $1,300 in place despite the 9.0 percent increase in WACC. The 5% increase in WACC resulted in a 50% increase in the price goal.

WACC has the ring of an acronym from a business school. Yes, it is correct. When establishing a WACC, a company’s cost of debt and the cost of equity are taken into account. Analysts and investors may use the WACC to value shares by using discounted cash flows, for example.

Calculating one’s genuine debt burden is a simple process. Companies pay interest to both bondholders and lenders. What you pay is what you get. This may be a little more difficult to comprehend. A company’s return on investment (ROI) is a measure of how much money investors are prepared to put into the stock. Investing costs are affected by factors like stock market volatility and the yield on government bonds, for example.

Tax-free returns may be obtained by purchasing government bonds. Since Treasury securities guarantee a return of principal to investors, they are a secure bet for investors. In the United States, it is feasible to print money. In contrast to government bonds, stocks should always have a higher profit margin.

Jonas, a writer. To take advantage of the “higher risk-free rate,” WACC has soared. Investors are searching for more in the stock market since the yield on government bonds is rising. Lower prices for the same service or product lead to more profits, as does the reverse.

Surely, this is all very academic. It’s how analysts adjust models to things like rising interest rates and particular situations that is important.

Despite Tesla’s mid-afternoon price goal adjustment, the company’s stock didn’t fall. Closed at $708.26 per share, a decrease of 0.4% from the previous day’s closing. The S&P 500SPX +2.37% and the Dow Jones Industrial Average DJIA +2.10% both declined by 0.1 percent and 0.2 percent on Wednesday after spending most of the day in the green.

The average analyst price estimate for Tesla shares plummeted to $910 after Jonas’ downgrade. At the start of the trading day on Friday, Credit Suisse analyst Dan Levy lowered his price target on the stock from $1,125 to $1,000. Using the same data as Jonas, Levy argued, “A bigger discount rate.”

As soon as first-quarter results were released in April, the stock’s average analyst target price climbed to almost $1,000.

On Friday, Tesla’s premarket share price rose 0.8 percent to $710.55.

The post On Wednesday, Adam Jonas, an Analyst at Morgan Stanley, Lowered His Price Objective for Tesla appeared first on Best Stocks.

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