CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $10 to $210, based on a 2025 P/E of 54.5x, justified by long-term growth expectations. We cut our adjusted EPS views by $0.20 to $2.55 for 2024 and by $0.15 to $3.85 for 2025. TSLA posted Q1 adjusted EPS of $0.45 vs. $0.85 (-47%), shy of the $0.50 consensus. Revenue fell 9% to $21.30B ($960M below consensus) and gross margin contracted 200 bps to 17.4% (90 bps above consensus). TSLA said Cybertruck production lifted to over 1K units/week in April and its earnings slides featured a preview of technologies in development, including a ride-hailing app, humanoid robot, AI computing, and full self-driving. TSLA also said it would accelerate the launch of new vehicle models ahead of its previously-communicated start of production. We think the release will go a long way toward helping restore investor confidence in the story and justify its valuation premium as a cutting-edge tech company, not merely an auto manufacturer. Shares surged 6%+ after-hours and we remain at a Buy rating.