Piper Jaffray Upgrades Tesla Motors (TSLA) to Overweight, Slashes EPS Estimates, Asks Clients To Employ Creative Valuation Methods

April 10, 2017 4:19 AM EDT
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Price: $617.69 --0%

Rating Summary:
    21 Buy, 22 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 1 | Down: 1 | New: 43
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Piper Jaffray upgraded Tesla Motors (NASDAQ: TSLA) from Neutral to Overweight with a price target of $368.00 (from $223.00).

Analyst Alex Potter tells clients in a morning note that he and his team have driven a Tesla for seven months in preparation for this morning's report in which he is dramatically adjusting his FY 2017 EPS down (from a gain of $0.42 to a loss of $4.83). He upgrades the stock and raises his PT by 65 percent noting that investors might need to, and we quote, "employ a 'creative' valuation methodology and prepare for a bumpy ride" before following Potters advice.

Here's his material adjustment to 2017 EPS estimates to reflect inefficiencies in the Model 3 launch.

  • Q1 2017 EPS goes from a loss of $0.12 to a loss of $0.78.
  • Q2 2017 EPS goes from a loss of $0.13 to a loss of $0.82.
  • Q3 2017 EPS goes from a gain of $0.15 to a loss $1.60.
  • Q4 2017 EPS goes from a gain of $0.52 to a loss of $1.63
  • FY 2017 EPS goes from a gain of $0.42 to a loss $4.83

Miraculously the stock is upgraded and the PT is raised by 65 percent.

The analyst also introduced EPS estimates for 2018:

  1. Q1 2018 EPS estimate is for a loss of $0.88.
  2. Q2 2018 EPS estimate is for a loss of $0.81.
  3. Q3 2018 EPS estimate is for a gain of $0.32.
  4. Q4 2018 EPS estimate is for a gain of $1.26.
  5. FY 2018 EPS estimate is for a loss $0.11.

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 $302.54 Friday.



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Analyst Comments, Analyst EPS View, Analyst PT Change, Hot Upgrades, Upgrades

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Piper Jaffray, Tesla, Model 3