Baird analyst Ben Kallo reiterated an Outperform rating and raised his price target on Tesla Motors (NASDAQ: TSLA) from $215 to $245 following Q4 results that beat on the top and bottom lines.
"Importantly, TSLA issued 2014 delivery guidance of 35k Model S' which bested our expectation of 29k cars. TSLA also met its margin target and expects to expand margin throughout 2014 while increasing production to 1,000 cars per week by year end," Kallo said. "With catalyst ahead, we think the stock will continue to move higher."
The new price target is based on 34x our 2016E non-GAAP EPS of $7.21 which includes sales of ~48,000 Model S and ~38,000 Model X vehicles (increased from 40,000 and 36,000, respectively).
The firm raised FY 2014 EPS from $1.18 to $1.45 and FY 2015 EPS from $3.32 to $3.91.