UPDATE: Tesla (TSLA) PT Raised to $250 at Roth Capital, 'Supply Chain a Probable Headwind'

October 21, 2021 9:01 AM EDT
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Price: $1,130.89 +4.27%

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    24 Buy, 21 Hold, 12 Sell

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    Up: 12 | Down: 10 | New: 42
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(Updated - October 21, 2021 9:02 AM EDT)

Roth Capital analyst Craig Irwin raised the price target on Tesla (NASDAQ: TSLA) to $250.00 (from $150.00) while maintaining a Neutral rating.

The analyst comments "Tesla's impressive 3Q21 results weren't unexpected, with uplift driven by 20% Q/Q deliveries growth and only two vehicles in meaningful production. We acknowledge Tesla is executing impeccably, but this does not alter our view Tesla is egregiously overvalued. The company will deliver around 900,000 vehicles in 2021 and exit with 1.5m units in capacity, yet has a valuation similar to all other auto OEMs combined. Those other OEMs producing 75m+ cars this year should deliver several winners in EVs too"

Further Irwin notes "We are raising our target to $250 (from $150) using a 23x P/EPS multiple on 2025E adj-EPS of $10.95. Our Neutral rating deviates from the ROTH standard rating system, and we believe the Neutral rating appropriately balances how Tesla is positioned to continue executing, but the shares are valued at an oversize premium to all peers in the automotive sector. The current market valuation appears to rest on the specious assumption that the hundreds of EVs slated for launch by '25 will all be flops. Tesla does not operate in a vacuum."

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