Stifel Remains Posiitive on Tesla (TSLA) Following Q3 Results; Focus on N.A.Aimed at Quieting Investor/Media Concerns
Stifel maintains a Buy rating and $400 price target on Tesla Motors (Nasdaq: TSLA) following Q3 results reported after markets closed Wednesday.
Analyst James Albertine commented, Overall, we assumed some haircutting of production and deliveries given the disruption related to Model X changeover procedures during the summer. We were surprised with the amount of ZEV revenues and we believe the prioritization of North American delivery commentary is designed to quell the broader investor / media concerns as of late. We believe, and TSLA indicated, the 2015 outlook remains unchanged, and so does our positive outlook on shares. We would add, though early in the Gigafactory process, it is incrementally encouraging that management is offering an earlier jumpstart for the Model 3 when they could have used this opportunity to push back guidance further. Our model remains under review and though we suspect investors will focus on $0.30 to $0.35 4Q14 EPS guidance versus $0.75 Street outlook, this is more a function of pulled up R&D and air pocket created by production related changes filling in globally between 2014 and early 2015, rather than a material reversion of existing trends.
Key variances to Stifel's model: Deliveries of 7,785 units, versus the firm's 7,650 unit estimate and guidance of around 7,800 units. Deliveries in Q214 were 7,579 units.
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Tesla Motors closed at $230.97 yesterday.