Tesla (TSLA) Quarter Had Some Positives, Nomura Reits $300 PT

Nomura/Instinet analyst Christopher Eberle reiterated a Neutral rating and $300.00 price target on Tesla (NASDAQ: TSLA) after 1Q19 results missed expectations, with both revenue and loss-per share below consensus. But...1Q19 was a unique period for the company for several reasons 1) it was a challenging delivery logistics 2) the company initiated price reductions and 3) there was a sizable bond repayment. Despite all of these headwinds Tesla reaffirmed its FY19 delivery outlook (360,000-400,000 units), as it expects a considerable sequential recovery in 2Q19 (at least +40% QoQ) and at a minimum seasonal 2H.

The analyst stated "Management seemed confident in their near-term visibility, in particular, which is encouraging given that the second quarter is already nearly one-third complete. Tesla also noted that it expects positive FCF in every remaining quarter in 2019, including 2Q, which we think is likely. Overall, we believe that Tesla’s reiterated FY19 outlook is achievable, albeit challenging, and maintain our Neutral rating and $300 target price".

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Shares of Tesla closed at $257.64 yesterday.

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