Goldman Sachs maintained a Neutral rating on Tesla Motors (NASDAQ: TSLA) and raised its price target to $170.00 (from $118.00). Comments follow and update on plans for its Giga factory and a $1.6 billion convertible notes offering.In late pre-market trade the stock is changing hands at $260.47, up $7.47.
"We estimate the transaction will be dilutive to TSLA EPS by ~15% over the next three years but by a much smaller 4% in 2018, the year on which we base our valuation. As such, our 2014/2015/2016 EPS estimates decline to $1.40/$2.00/$4.50 from $1.79/$2.37/$4.87. Our estimates fall as the offering increases Tesla's borrowing costs from the combination of increased cash interest expense as well as amortization of the original issue discount (OID) related to the embedded convert option," said analyst Patrick Archambault....MORE
Sorry about the earlier mis-attribution.
