Tesla (TSLA) bull Jim Cramer talks $90 price target and how young investors see TSLA

Tesla (NASDAQ: TSLA) investor and company supporter Jim Cramer says that JPMorgan’s recently adjusted $90 price target isn’t a big deal because younger investors aren’t using “traditional metrics” to determine a stock’s potential.

In an interview with The Street on Thursday morning, the longtime host of MSNBC’s Mad Money talked about JPMorgan’s questionable price target for the electric automaker. On Wednesday, analyst Ryan Brinkman upped his outlook on TSLA stock from $80 to $90, calling the current trading price of over $600 “dramatically overvalued” and advising investors to not up their holdings due to the upcoming S&P 500 inclusion.

But Cramer isn’t concerned about price targets, especially for younger investors who are getting their first tastes of trading this year. Tech stocks have been a hot commodity for the young, retail investor, and their perception of the business itself is more important than what some analyst says, according to Cramer.

“The point of what I have been saying is that the younger investor is not using any of these traditional metrics. You know, the idea that you take five cents, you add five cents, price target boosts. None of that means anything,” Cramer explained.

Instead of worrying about what analysts have to say about a specific company that is appealing to young investors, Cramer believes that they take it at face value, more or less. It isn’t about what more seasoned investors have done to turn their portfolios into powerhouses, it is what the company they’re interested in stands for. Tesla is a prime example, and the company’s perception to younger investors is that Elon Musk is a smart person who is making great cars.

“What they [younger investors] know is what they see: a car made by a genius that everybody wants, that they could build millions of, and it still would be bought,” Cramer added to his remarks. “They don’t understand why older people continue to say ‘Listen! Guys! Where’s the earnings?’ They’ve raised all this money, they’ve made money, that’s why the stock is expensive.”

In summation, Cramer is really saying that overanalyzing stocks and breaking them down in every possible metric is not something that younger investors are really willing to do. “It doesn’t mean anything to them. It’s not part of the equation.”

Tesla stock has overtaken Apple as the go-to stock for younger investors, according to Texas-based clearing company Apex Clearing. The company’s surge in valuation in 2020 has led to many portfolios gaining massively in value.

Source Teslarati