Tesla (TSLA) Miss Increases the Likelihood of an Offering Sooner Than Later - JPMorgan

April 25, 2019 6:27 AM EDT
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Price: $589.72 +3.15%

Rating Summary:
    21 Buy, 21 Hold, 11 Sell

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JPMorgan analyst Ryan Brinkman reiterated an Underweight rating and $200.00 price target on Tesla (NASDAQ: TSLA) after the company reported 1Q results that missed expectations for margins, and free cash flow while introducing 2Q19 guidance that newly calls for a loss vs.consensus which had modeled a profit.

The analyst stated "Management also seemed less opposed to an equity capital raise, acknowledging “some merit” to the idea, which in our view serves to highlight dilution risk that likely rises after 1Q cash flow and cash balance tracked weaker than JPM and consensus expectations. Our estimate of adjusted free cash flow in 1Q is -$732 mn vs. JPM -$630 mn and consensus -$588 mn (driven by lower operating cash flow as the firm continued to thrift on capital expenditures) which contributed to a nonrestricted cash balance at quarter-end of $2.2 bn vs. our sense of comfort level of $1.5-$2.0 bn".

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $257.65 yesterday.



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