Tesla (TSLA) PT Raised to $117 at Citi Ahead of Earnings
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Citi analyst Itay Michaeli raised the price target on Tesla (NASDAQ: TSLA) to $117.00 (from $110.00) ahead of Tesla’s Q3 results on 10/21. The PT increase incorporates reported Q3 deliveries that were above expectations and the recent capital raise.
The analyst reiterated a Sell rating, stating "Our 2020-22 EPS estimates (non-GAAP) go up modestly to mostly reflect higher delivery expectations (see EPS updates below), though our 2020 delivery estimate remains at the low-end of company targets (480k). Our price target moves to $117 from $110 on a favorable adjustment to our discounted terminal value scenarios (bull/base/bear probabilities go to 15%/80%/5% from 15%/70%/15% prior) to reflect continued balance sheet improvement. Key metrics we’re watching in Q3: (a) Vehicle ASP and gross margin progression post the Model Y ramp (we’re modeling 21% auto gross margin ex. credits); (b) An update on expected Q4 deliveries (we’re at 161k) and the prior planned Fremont capacity increase; (c) More detail on the expected FSD rollout, specifically with respect to the level of automation (L2 or higher), usage domains (intersections, weather etc.) and go-to-market strategy (including subscriptions)."
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Related EntitiesCiti, Tesla, Earnings
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