Tesla Motors (TSLA) Target Cut to $70 at BofA/Merrill Lynch Following Weak Q4; Much More Downside Ahead
Long-time Tesla Motors (NASDAQ: TSLA) bear John Lovallo of BofA/Merrill Lynch took a victory lap today following results from the EV maker after the close. He also cut estimates and his price target to $70.00 (from $75.00) while reiterating an Underperform rating.
The analyst key takeaways from the quarter were: 1) 4Q deliveries, revenue, and EPS well below expectations, 2) Tesla burned $455mm of free cash flow in 4Q ($541 mm ex. reg. credits), 3) Operating expenses,capex, and cash burn all forecast higher, with little relief in sight, 4) It could prove challenging for bulls to maintain lofty estimates, POs, & Buy ratings, 5) Stock only down marginally in aftermarket trading, but there is likely much more ahead.
The firm cut FY 2015 EPS from $2.40 to $1.56, FY 2016 EPS from $3.00 to $2.10, FY 2017 EPS from $3.95 to $2.60.
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Shares of Tesla Motors closed at $212.80 yesterday.