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 $25 to $275 on a ’25 P/E of 50x, justified by long-term growth expectations. We lower our adjusted EPS estimates by $0.85 to $3.90 for ’24 and by $0.75 to $5.50 for ’25. TSLA posted Q4 adjusted EPS of $0.71 vs. $1.19 (-40%), three cents shy of consensus. Revenue rose 3.5% to $25.17B ($590M below consensus) and gross margin contracted 620 bps to 17.6% (50 bps below consensus). We think Wednesday’s Reuters report that TSLA plans to launch its long-awaited mass market EV model (a compact crossover code named “Redwood”) with first production as early as mid-2025 could be the catalyst the stock needs after some profit taking so far in January after shares more than doubled in 2023. While the bottom-line miss was disappointing and uncharacteristic, as the low-cost U.S. EV producer (a Q4 cost of goods sold of just over $36K/vehicle) and with prices appearing to be nearing an inflection point, we see significant earnings leverage for TSLA. We lower our target, but reiterate our Buy rating.