UPDATE: Tudor Pickering Starts Tesla (TSLA) at Sell
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(Updated - September 23, 2021 8:35 AM EDT)
Tudor Pickering analyst Matt Portillo initiates coverage on Tesla (NASDAQ: TSLA) with a Sell rating and a price target of $537.00.
The analyst comments "Don’t get us wrong, we think Tesla has done an amazing job of building a world class business in a number of segments and the pace of build out and scale of manufacturing operations on the automotive front has been truly impressive. In fact, we believe one of Tesla’s key advantages is their manufacturing process with built-for-purpose facilities focused on high volume production of popular selling electric vehicles including the Model 3 and Model Y. Our Sell rating on the stock is primarily related to current valuation, uncertainty of the path forward to level 4+ autonomy that is underwritten for FSD and growing global EV competition that may impact longer term sales forecasts. Our price target is a blended average of our asset-level discounted cashflow models ($527/shr) and a 30x P/E multiple on 2030 EPS estimate of $34.06 discounted back at a WACC of 7.0% to a fair value of $546/shr. To justify the current stock price, in our view, the company would need to reach sales of ~8MM units with a long term FSD adoption rate at 40% (currently modeled in the mid-teens for 2021)."
Shares of Tesla closed at $751.94 yesterday.
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Related EntitiesTesla, Model 3
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