Tesla's Model X Worth The Wait; Baird Keeps $335 Price Target

In a report published Thursday, Baird analyst Ben Kallo maintained an Outperform rating on Tesla Motors Inc (NASDAQ: TSLA), with a price target of $335, despite the Model X ramp being slower than anticipated.Tesla reported its Q2 top line and profit ahead of consensus expectations. Analyst Ben Kallo added, however, that the company's bottom line was benefited by a onetime currency impact. Tesla's non-GAAP revenue of $1,197M was ahead of the Baird estimate of $1,182.4M and the consensus estimate of $1,186.2M. Non-GAAP net income came in at ($60.8M), as compared to the Baird estimate of ($37.3M) and the consensus estimates of ($68.7M). Total gross margin was 23.4 percent, missing the Baird estimate of 26.4 percent and consensus expectation of 23.9 percent.Kallo said that the company unexpectedly reduced its delivery guidance from 55k units to 50k-55k units. "Perspective is important, however, as this is a short-term issue, which on the positive side reduces production ramp risk for the fourth quarter," the analyst added. In the report Baird noted, "On the negative, TSLA guided down in deliveries, conveyed cautiousness on the production ramp for 2016, and alluded it could raise capital. On the positive side, Q4 production ramp risk is reduced, and management confirmed initial Model X deliveries are on track."Mentioning that Model X was "worth the wait," Kallo wrote that Tesla's long-term growth remained "intact" and "we would be buyers ahead of the Model X configuration/reveal this month."