Tesla’s stock (TSLA) is down almost 5% today following a downgrade from S&P Global Market Intelligence. S&P analyst Efraim Levy issued a new note today downgrading Tesla to “sell” with a new price target of $155, while the stock currently trades at ~$223.

Here’s an excerpt from Levy’s note via Barrons:

“With Tesla above our $155 target, we lower our opinion on these volatile shares to Sell. The shares have rallied sharply recently in anticipation of the Model 3 reveal later this month and amid bullish comments from some equity analysts.”

Indeed, Tesla’s stock rallied about 60% since Tesla CEO Elon Musk confirmed the unveiling of the Model 3 for March 31st. The analyst agrees with the consensus that Tesla will see a lot of growth in the short-term, but he doesn’t agree with the valuation:

“While we expect sales and EPS to surge in ’16, we see significant execution and valuation risk in the premium priced stock. Our target equates to a multiple of 111X our ’16 EPS projection of $1.40, and 43X our 2017 EPS estimate of $3.60, reflecting our expectation for rapid automotive profit growth through ’17, from ’14′s base, but we note risks.”

Levy has a very good TipRanks score with a 75% success rate and he stands at #300 out of 3,821 on the analyst leaderboard.

Tesla will be unveiling the Model 3 at Tesla’s Design Studio in Hawthorne, California, on March 31st at 8:30pm Pacific.

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