Goldman Sachs Cuts Numbers on Telsa (TSLA) on Offering, Production Cut
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Price: $345.13 -1.71%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Goldman Sachs cut estimates and its price target on Tesla Motors (NASDAQ: TSLA) from $48 to $42 following new guidance and the secondary offering. The firm is maintaining a Buy rating.
The firm's 2012/2013/2014 estimates go to ($3.17)/$1.14/$2.80 from ($2.91)/$1.17/$2.90 previously.
"While the delivery cut and a secondary offering were widely anticipated in our view, the timing comes as a surprise, as we had expected the company to wait until it was further along in its launch ramp," the firm said. "Our conversations with the company indicate they viewed it as preferable to go ahead with de-risking the capital structure to remove as much investor doubt as possible post the pre-announcement... While the revisions are significant, we would prefer to see the company delay production than compromise on quality, and significant progress has been made with the weekly production rate now at 77 vehicles vs 5 vehicles in June."
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $30.66 yesterday.
The firm's 2012/2013/2014 estimates go to ($3.17)/$1.14/$2.80 from ($2.91)/$1.17/$2.90 previously.
"While the delivery cut and a secondary offering were widely anticipated in our view, the timing comes as a surprise, as we had expected the company to wait until it was further along in its launch ramp," the firm said. "Our conversations with the company indicate they viewed it as preferable to go ahead with de-risking the capital structure to remove as much investor doubt as possible post the pre-announcement... While the revisions are significant, we would prefer to see the company delay production than compromise on quality, and significant progress has been made with the weekly production rate now at 77 vehicles vs 5 vehicles in June."
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $30.66 yesterday.
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