Tesla (TSLA) Handily Beats EPS but BofA Securities Maintains Neutral on Valuation

BofA Securities analyst John Murphy reiterated a Neutral rating and $1,300.00 price target on Tesla (NASDAQ: TSLA) after the company reported 1Q:22 non-GAAP EPS of $3.22, well above the Bloomberg consensus of $2.27. Free cash flow was also a positive surprise in the quarter, specifically reported FCF of $2.2bn, further adding credence to the notion that TSLA has now reached self-funding status.

Despite the upside, the analyst reiterated the Neutral rating, stating "despite the solid 1Q:22 performance, we have trepidation that TSLA stock may already be priced for perfection (or at least priced for hyperbolic growth), such that near-term earnings beats may be insufficient to get bulls incrementally positive on the stock. With this in mind, we reiterate our Neutral rating."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $977.20 yesterday.

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