UPDATE: Tesla Motors (TSLA) PT Raised to $430 at Guggenheim

July 5, 2017 7:44 AM EDT
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(Updated - July 5, 2017 8:56 AM EDT)

(updated to add analyst comment)

Guggenheim raised its price target on Tesla Motors (NASDAQ: TSLA) to $430.00 (from $380.00) while maintaining a Buy rating.

Analyst Robert Chira says the bigger news out of Tesla was the fact that the company will launch the Model 3 in July which represents "Tesla’s first car to genuinely launch on schedule."

He expects 2-3 years of upside leverage to begin as volumes increase off the company's high fixed-cost structure. He believes that what really matters is the Model 3 and FY 2019/2020 EPS.

As for Q2, Chira raises his EPS estimate from $1.99 to $2.30 and FY 2017 rises from $7.24 to $7.79. He further believes the "Model 3 roll-out should drive at least 8 quarters of positive Q/Q momentum."

He also remains bullish as most of the nation doesn't even know what a Model 3 is, to wit: "While some question the dependability of refundable $1K deposits, we look at the flip-side, with most of the population still not even knowing what a Model 3 even is yet, so that ~400K preorders might rather far under-count ultimate initial demand."



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