Tesla Motors (TSLA) Named Top 2017 Pick at Baird

December 30, 2016 6:06 AM EST
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Price: $791.36 +2.19%

Rating Summary:
    24 Buy, 21 Hold, 12 Sell

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Baird analyst Ben Kallo named Tesla Motors (NASDAQ: TSLA) his top pick for 2017 and reiterated an Outperform rating and price target of $338.

"We think the ramp of Tesla Energy and Model 3 production could exceed expectations during 2017, and believe the opportunity is not currently reflected in share prices," Kallo said.

Kallo does not believe Tesla's energy storage business and growth opportunity is currently reflected in share prices. "We believe TSLA battery sales are accelerating, and we should see additional benefits from the battery production ramp coinciding with the launch of the Model 3," he commented. "We recommend accumulating shares ahead of additional details being released about TSLA’s current battery costs and density metrics, and believe the upcoming Gigafactory tour on January 4 will be a positive catalyst for the stock."

Powerwall 2 provides a competitive pricing advantage per kWh, and should allow TSLA to continue to gain market share for homes and small businesses, the analyst said.

The analyst also does not believe the Q4 delivery number (expected by Jan. 3) will be an overhang and recommends buying shares heading into 2017 as they believe the stock will make new highs.

The firm will be hosting a dinner with TSLA management on January 3 and touring the Gigafactory on January 4.

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 $214.68 yesterday.

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Robert W Baird, Tesla, Ben Kallo, Model 3