Tesla Motors Inc (TSLA): Barclays Reduces EPS Estimate For Next Year

Posted Sep 10, 2013

Barclays analysts have adjusted their estimates for Tesla Motors Inc (NASDAQ:TSLA) based on lower interest income next year.  The Barclays analysts are maintaining their equal weight rating and $141 share price target.

Unfortunately, Barclays reduced their earnings per share estimate for the 2014 fiscal year.  Analysts Brian A. Johnson, Dan Levy and Steven Hempel kept their earnings per share estimate for Tesla Motors Inc (NASDAQ:TSLA) current year at $1.08 per share and lowered their estimate for next year to $3.60 per share, which is a reduction of 5 cents.  They lowered their estimates for next year because of lower interest income.

Barclays estimates believes that the shares of Tesla Motors Inc (NASDAQ:TSLA) is fairly priced.  They also pointed out that there is still strong demand for the Model S sedan.

The Barclays analysts also pointed out that if Tesla Motors Inc (NASDAQ:TSLA) becomes a mass market automaker and then goes on to generate $23.25 per share in earnings in eight years, they suggest a price of $279 per share with an 11 times multiple.

If the company is only successful with the Model S sedan, then their downside is suggested at $87 per share in value with earnings of $5.91 per share in three years, which is a 17 times multiple and a 5% discount value.

[Source: ValueWalk]