Maxim Group Reiterates Buy Rating, $50 PT on Tesla Motors
In a report published Wednesday, Maxim Group reiterated its Buy rating and $50.00 price target on Tesla Motors (NASDAQ: TSLA).
Maxim Group noted, “While TSLA's stock tumbled (10%) Tue. on the one-two punch of a secondary and a cut to 2012 guidance, we expect selling pressure to subside following the deal with (1) the removal of a predominant overhang, (2) 5% EPS dilution immaterial to TSLA's valuation prospects, and (3) TSLA's ability to produce 400 cars/week (20k/year)—and thus positive free cash flow—likely to be evident by year end; we expect TSLA to soon resume a path upward to our $50 PT and maintain our Buy.”
Tesla Motors closed on Tuesday at $27.66.
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