Wedbush Reiterates on Tesla Ahead of Earnings
In a report published Friday, Wedbush analyst Craig Irwin reiterated an Outperform rating and $240 PT on Tesla Motors (NASDAQ: TSLA) based on an expected strong third quarter.
Wedbush estimates 3Q13 non-GAAP revenue of $583.2 million and EPS of $0.11. Irwin predicted 5,850 Model S vehicle delivery in the third quarter versus Tesla's guidance of 5,000. The analyst noted Tesla's incremental visibility for achieving fourth quarter margins and the "significant traction" of sales in Europe.
Irwin commented, "We see strong positives in Tesla's credible path to longer-term battery cost reduction and the Gen-III vehicle target costs, and what we now believe will be a receptive buying public willing to purchase EV's while retaining reasonable expectations for these vehicles. Tesla's multi-year lead over credible competition suggests the company is well positioned to keep surprising conventional automotive OEM competitors and execute on its communicated strategy."
Tesla reports 3Q13 results after market close on Tuesday, November 5th.
Tesla closed at $162.12 per share on Thursday.
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