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 $300, on a 2025 P/E of 48x, justified by long-term growth expectations. We drop our adjusted EPS estimates by $0.25 to $3.30 for 2023, by $0.50 to $4.75 for 2024, and by $0.95 to $6.25 for 2025. TSLA posted Q3 adjusted EPS of $0.66 vs. $1.05 (-37%), well below the $0.73 consensus. Revenue rose 9% to $23.35B ($790M below consensus) and gross margin contracted 720 bps to 17.9% (10 bps below consensus). Despite the miss, TSLA reiterated 2023 volume guidance of 1.8M units and said that while the Cybertruck is in pilot production, its annual installed Cybertruck production capacity is now in excess of 125K units, which we think should reassure investors concerned about the ramp-up of the highly-anticipated new model. We also view investor concerns regarding recent gross margin pressures as somewhat overblown, as comps should improve in the next couple of quarters. TSLA should emerge from the UAW strike with an even wider competitive moat and as the industry’s biggest winner.