Deutsche Bank's Dan Galves says the stock is now discounting pre-Gen 3 earnings and the sell-off creates a favorable entry point. "We are reiterating our Buy recommendation as we see a series of positive catalysts over the next several months that could lead to renewed confidence in earnings trajectory. These include: 1) A favorable resolution of the NHTSA investigation; 2) Initial news on (what we believe will be very strong) China order flows; 3) Increased visibility on an accelerating order/production ramp, and; 4) Further gross margin improvement and operating expense leverage (which may be significantly better than consensus). The firm maintained a Buy rating and price target of $200.
Meanwhile BofA's John Lovallo says shares remain overvalued even after the sell-off. He reiterates an Underperform rating and $45 price target, saying the company would have to 348K vehicles/year by 2020 to justify the current valuation.