Tesla TSLA Receives Price Target Boost to $900 from Deutsche Bank, Reiterates Buy

Eva Fox by Eva Fox January 28, 2021

Tesla TSLA Receives Price Target Boost to $900 from Deutsche Bank, Reiterates Buy

Deutsche Bank raised its price target for Tesla (NASDAQ: TSLA) to $900 from $890 and maintains a Buy rating on the stock as the manufacturer demonstrates material acceleration in deliveries, and significant growth potential for the company in 2021.

Deutsche Bank Analyst Emmanuel Rosner raised the firm's price target on Tesla to $900 from $890, and keeps a Buy rating on the shares. He recommends taking advantage of the fact that stocks are weak today in order to accumulate them. In a note to customers, Rosner wrote that while some may regard the lack of detailed delivery forecasts for 2021, which the company did not report, as disappointing, this should not materially affect Tesla's valuation. The company is set to grow by 50% this year alone, allowing Tesla to “materially outperform low investor expectations,” he explained.

Rosner believes that Tesla has achieved "solid" production targets in Q4 2020. He also points to a significant acceleration in deliveries compared to previous quarters. In addition to reaching new delivery records, the company continues to grow in new geographic regions by building, expanding, and opening factories there. Also, the analyst points out that Tesla continues to launch new products, operate in new segments, and has significant growth potential from autonomous driving.

Teslareported Adj EPS (non-GAAP) of US $0.80 per share, and record revenue of US $10.744 billion for Q4 2020. 

Cash

  • Operating cash flow less capex (free cash flow) of $2.8B in 2020
  • $4.9B increase in our cash and cash equivalents in Q4 to $19.4B
  • Free cash flow $1.9B in Q4

Profitability

  • $721M GAAP net income; $2.5B non-GAAP net income in 2020
  • $270M GAAP net income; $903M non-GAAP net income (ex-SBC*) in Q4
  • $575M GAAP operating income; 5.4% operating margin in Q4
  • SBC expense increased to $633M in Q4

Operations

  • Half a million vehicles produced and delivered in 2020
  • Model Y production at Gigafactory Shanghai started in December 2020
  • Updated Model S and Model X launched in January 2021

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.





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