Tesla Motors (TSLA) Q1 Results Could Be Lackluster, But Buy Shares Ahead of Upcoming Catalysts - Baird
- Top 10 News for 2/8 - 2/12: Banks Crushed Amid Global Concerns; Tesla Ramps on Outlook; SEC Targets Boeing
- Republicans gear up for U.S. Supreme Court battle after Scalia's death
- Wall Street rallies; S&P 500 snaps five-day losing streak
- Loeb's Third Point LLC 13F Shows New Stake Axalta (AXTA), Morgan Stanley (MS), Liquidates T-Mobile (TMUS), Lowers eBay (EBAY) ...
- Intercept Pharma (ICPT) Said to Explore Sale Following Interest
Baird analyst Ben Kallo reiterated an Outperform rating and $275 price target on Tesla Motors (NASDAQ: TSLA) ahead of Q1 results.
Kallo comments, "Although TSLA's earnings date has not been released, we believe the recent pullback largely has weak results priced in. We are expecting 6,400 deliveries and a solid production number, but are more cautious heading into what will likely be an uneventful quarter. That said, we believe TSLA is well positioned for positive results in Q2 through Q4, and remain bullish in the longer term due to several upcoming catalysts."
The analyst notes one-time accrual for undercarriage reinforcement will impact results, but likely less than some estimates and should be a long-term positive for the company. They see non-GAAP revenue of $645M and non-GAAP EPS of ($0.05) vs. consensus of $703M and $0.11.
The firm also cautions investors on deliveries as Norwegian registrations may have expectations too high. " Although the recent announcement of 1,493 Model S registrations in Norway shows a positive demand trend, the registrations likely do not represent the timing of deliveries, which may have already occured or could occur in future quarters," he said.
Kallo sees production number should be solid as TSLA continues to ramp manufacturing and sees several catalysts ahead which should drive the stock higher. "Upcoming catalysts include gigafactory site selection, partner announcements and ground breaking, the marketing campaign for the Model X, as well as updates on TSLA’s second production line and global demand trends," Kallo said.
Lastly, the firm expects additional information about the Chinese market as deliveries are scheduled to begin in the near term.
Shares of Tesla Motors closed at $212.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Cowen Cuts PT on Zillow (Z) to $12 Amid Q4 Results; Says Sub Growth Absent, Other Issues Remain
- Mizuho Securities Cuts Price Target on Teva Pharma (TEVA) Following Slight 4Q EPS Miss
- Northland Capital Markets Remains Bullish Following PDF Solutions' (PDFS) 4Q Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesRobert W Baird, Tesla, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!