Argus Upgrades Tesla Motors (TSLA) to Buy, $333 PT

Argus upgraded Tesla Motors (NASDAQ: TSLA) from Hold to Buy with a price target of $333.00.

While the company has faced production shortfalls and cost overruns over the past 18 months, they believe that the company has made progress in addressing these issues and that it is poised for much stronger performance in the coming quarters.

The analyst also notes the company completed construction of its battery production plant or “Gigafactory” in Nevada, which management believes will reduce battery pack costs by more than 30%. The lower battery cost will allow Tesla to price its third-generation vehicles at about $35,000.

The firm is cutting 2016 non-GAAP EPS estimate to $1.25 from $1.48 based on our higher cost expectations. Meanwhile, they are initiating a 2017 non-GAAP EPS estimate of $3.21, or more than double our 2016 forecast. They project revenue of $11.18 billion, up 31% from their 2016 estimate.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $232.74 yesterday.

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