Tesla (TSLA) Shares May Have Found Support Here
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Price: $375.12 -0.11%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 25
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 25
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Shares of Tesla (NASDAQ: TSLA) are adding to Wednesday's gains as the stock looks to stabilize from the nearly 40% sell-off from their recent high driven in large part by three Model S fires which threatened to derail demand.
Investors believe the company will be able to put the Model S fires behind it with little damage to its reputation. This view is being supported by some Tesla analysts.
Deutsche Bank analyst Dan Galves sees a favorable resolution of the NHTSA investigation and sees upcoming news of China order flows as a positive catalyst. In a note to clients Wednesday, he said he sees the share price at pre-Generation 3 profit levels, which he views as an important support level for the stock. "Compared to our 2016 estimates which are based on combined Model S/Model X volumes of 56k units, the stock is trading at 13x 2016 EBITDA and 22x 2016 EPS (reasonable given that the mass-market launch expected in 2017 could at least triple those volumes)," the analyst said. He rates shares a Buy with a $200 price target.
In addition to the positive commentary from Deutsche Bank, S&P Capital removed their Sell rating, suggesting they too see limited downside at current levels. They now rate the share at Neutral.
Shares of Tesla are up 2.2% early to $128.21.
Investors believe the company will be able to put the Model S fires behind it with little damage to its reputation. This view is being supported by some Tesla analysts.
Deutsche Bank analyst Dan Galves sees a favorable resolution of the NHTSA investigation and sees upcoming news of China order flows as a positive catalyst. In a note to clients Wednesday, he said he sees the share price at pre-Generation 3 profit levels, which he views as an important support level for the stock. "Compared to our 2016 estimates which are based on combined Model S/Model X volumes of 56k units, the stock is trading at 13x 2016 EBITDA and 22x 2016 EPS (reasonable given that the mass-market launch expected in 2017 could at least triple those volumes)," the analyst said. He rates shares a Buy with a $200 price target.
In addition to the positive commentary from Deutsche Bank, S&P Capital removed their Sell rating, suggesting they too see limited downside at current levels. They now rate the share at Neutral.
Shares of Tesla are up 2.2% early to $128.21.
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