UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Tesla Motors Following 10-Q Takeaways

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Tesla Motors
TSLA
, and raised the price target from $35.00 to $50.00. In the report, Poole noted, “Raising target price to $50 and Maintaining Hold rating. In addition to noting key takeaways from Tesla's 10-Q, we are re-assessing our valuation framework and increasing target price to $50 from $35. We believe that the investor base is looking to 40k units as a realistic view of Model S demand once European and Asian markets are opened up. Our target price implies 10x EBITDA on 40k units and assuming ~14% EBIT margin. This is a modest premium to Porsche's 8x-9x multiple during its early ‘00's growth phase. Despite downside to our TP, we maintain Hold.” Tesla Motors closed on Tuesday at $83.24.

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