UPDATE: Deutsche Bank Stubborn With Low-Ball $35 Tesla (TSLA) Price Target; Q1 Earnings Loom
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Price: $362.86 +5.14%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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(Updated - May 7, 2013 11:03 AM EDT)
Tesla Motors (NASDAQ: TSLA) is set to report Q1 earnings after the close on Wednesday. On April 1st, Tesla amended its Q1 guidance, saying it would be full profitability on a both GAAP and non-GAAP basis. Since then shares have gone on a major rally, a move tied in part to news about revamped financing options.
Commenting on expectations for Q1, analyst Dan Galves said he expects revenue of $491 million and EPS of 2 cents. This compares to consensus of $492 million and EPS of 4 cents.
Besides Q1 performance, Galves believes investors will focus on 5 key points in Wednesday’s release and on the conference all. These include the impact of regulatory credits in Q1 and implications for true vehicle gross margin, profit guidance, cash position, order flow, and contingent liability from residual guarantee.
Discussing the first point Galves said, "We have no visibility on Q1 reg credits, but incorporate $40MM in our model, which would equate to approximately 41% of est’d gross margin and $8,400 per unit. Importantly, this would imply that underlying gross margin (ex credits) improved from est’d -9% in Q4 to +11% in Q1. That level of improvement would be outstanding, but still leaves the need for substantial further progress to hit mgmt guidance of 25% (excluding regulatory credit revenue) by Q4 2013."
Deutsche Bank has a Hold rating on Tesla Motors with a price target of $35.00. Interestingly, the $35 price target is significantly below Tesla's current share price. Based on comments, the Hold (vs Sell) rating appears related to technicals.
"While our DCF-derived target price implies significant downside for the stock, we maintain a Hold rating as we see technicals as a more significant driver of the stock than fundamentals in the near-term (short interest is high, but borrow capacity is limited and expensive)," said Galves.
For an analyst ratings summary and ratings history on Tesla Motors (NASDAQ: TSLA) click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $59.50 yesterday.
Tesla Motors (NASDAQ: TSLA) is set to report Q1 earnings after the close on Wednesday. On April 1st, Tesla amended its Q1 guidance, saying it would be full profitability on a both GAAP and non-GAAP basis. Since then shares have gone on a major rally, a move tied in part to news about revamped financing options.
Commenting on expectations for Q1, analyst Dan Galves said he expects revenue of $491 million and EPS of 2 cents. This compares to consensus of $492 million and EPS of 4 cents.
Besides Q1 performance, Galves believes investors will focus on 5 key points in Wednesday’s release and on the conference all. These include the impact of regulatory credits in Q1 and implications for true vehicle gross margin, profit guidance, cash position, order flow, and contingent liability from residual guarantee.
Discussing the first point Galves said, "We have no visibility on Q1 reg credits, but incorporate $40MM in our model, which would equate to approximately 41% of est’d gross margin and $8,400 per unit. Importantly, this would imply that underlying gross margin (ex credits) improved from est’d -9% in Q4 to +11% in Q1. That level of improvement would be outstanding, but still leaves the need for substantial further progress to hit mgmt guidance of 25% (excluding regulatory credit revenue) by Q4 2013."
Deutsche Bank has a Hold rating on Tesla Motors with a price target of $35.00. Interestingly, the $35 price target is significantly below Tesla's current share price. Based on comments, the Hold (vs Sell) rating appears related to technicals.
"While our DCF-derived target price implies significant downside for the stock, we maintain a Hold rating as we see technicals as a more significant driver of the stock than fundamentals in the near-term (short interest is high, but borrow capacity is limited and expensive)," said Galves.
For an analyst ratings summary and ratings history on Tesla Motors (NASDAQ: TSLA) click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $59.50 yesterday.
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