Doubling down on a losing hand, BAML's John Lovallo reaffirms a $65 price target on Tesla (TSLA) after the stock's surge above $250 yesterday and the announcement of the building of a $5B battery manufacturing facility.
Wedbush's Craig Irwin boosts his price target by $70 to $295. "We are raising our 2017 earnings forecast primarily on higher gross margin assumptions as Tesla indicated they expect costs to some down significantly during the first year of volume production at the new facility."
The capital raise and gigafactory plans are a positive says Baird's Ben Kallo, maintaining his Buy rating and $245 price target. "(1) the capital raise carries lower dilution than an equity capital raise and (2) the factory's estimated capex of $4B-$5B is substantially lower than many estimates ... Furthermore, gigafactory production is expected to reduce battery pack costs per kWh by 30% by 2017 making the Gen III one step closer to reality."
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