Jim Cramer Weighs in on Greek Debt Crisis's Impact on Stocks

Strategic Insights -

The Greek debt crisis continues to have a significant impact on the stock market, with Jim Cramer, co-manager of the Action Alerts PLUS portfolio, weighing in on the situation. Cramer was surprised to see that Macy's (M) shares haven't fallen further after Deutsche Bank analysts downgraded the stock to sell from buy, citing concerns about the company's earnings potential rather than its real estate investment trust structure. Meanwhile, analysts at Credit Suisse maintained their outperform rating on Tesla Motors (TSLA) and raised their price target to $325 from $290.

Key Takeaways:

  • Jim Cramer was surprised to see that Macy's (M) shares aren't lower after Deutsche Bank analysts downgraded the stock to sell from buy, citing concerns about the company's earnings potential rather than its real estate investment trust structure.
  • Cramer believes a downgrade from buy to hold would have been more appropriate for Macy's, considering the strong U.S. dollar has hurt the company's New York City sales.
  • Analysts at Credit Suisse maintained their outperform rating on Tesla Motors (TSLA) and raised their price target to $325 from $290, based on earnings per share reaching $6 in full-year 2017.
  • Cramer is skeptical about Tesla's ability to reach the price target of $325, citing the company's stock currently trading at $264.
  • The Greek debt crisis is continuing to weigh on stocks, with the situation affecting investor sentiment and market performance.

Statistics:

  • Macy's (M) shares are down 2.3% after Deutsche Bank analysts downgraded the stock to sell from buy.
  • Credit Suisse analysts raised their price target on Tesla Motors (TSLA) to $325 from $290, based on earnings per share reaching $6 in full-year 2017.
  • Tina Nguyen's "Tesla, Inc." (http://finance.yahoo.com/t/TS-LA) at Yahoo Finance.
  • Credit Suisse maintained their outperform rating on Tesla Motors (TSLA) despite some investors' concerns about the company's valuation and growth potential.
  • Macy's (M) shares have been down 2.3% in the last week, following the downgrade from buy to sell.
  • Tesla Motors (TSLA) has a market capitalization of approximately $40 billion.

Sources:

  • TheStreet, "Macy's M Stock Jumping on Possible Real Estate Sale" (http://www.thestreet.com/story/13172385/1/macys-m-stock-jumping-on-possible-real-estate-sale.html)
  • TheStreet, "Tesla Stock Has Driven Too Far and Is in Need of a Recharge" (http://www.thestreet.com/story/13200220/1/tesla-stock-has-driven-too-far-and-is-in-need-of-a-recharge.html)
  • Yahoo Finance, "TSLA - Tesla, Inc." (http://finance.yahoo.com/t/TS-LA)