(Bloomberg) — Tesla Inc. rose after analysts at Credit Suisse Group AG upgraded the shares to a buy-equivalent rating, saying the equity market rotation has left the electric-vehicle maker looking attractive.

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“We are hard pressed to find a stock that checks all the boxes as Tesla does,” with a good growth story and themes including disruption and decarbonization, analysts led by Dan M Levy wrote in a note to clients on Monday. This year’s growth-stock selloff — which prompted a 20% slump for Tesla — has created an opportune entry point to buy, they said.

The analysts — who have rated Tesla neutral since April 2020 — wrote that they expect Tesla shares to recover from their recent pullback, supported by strong fundamentals including volume growth and sustained margin strength. The stock gained as much as 4.8% in New York to $887 as of 9:40 a.m.

“While we’ve largely concurred with the favorable fundamental outlook for Tesla over the past two years, our challenge with the stock, and what held us on the sidelines, was valuation,” the analysts wrote. They reiterated a price target of $1,025, suggesting about 21% upside from Friday’s close.

The 2022 slump has seen Tesla’s valuation drop to the lowest since March 2020 at 81 times forward earnings — markedly cheaper than the post-pandemic peak of 218 times in January 2021, according to Bloomberg data.

(Updates stock move in third paragraph.)

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