Tesla (TSLA) Stock Headed for $400 per Share?

Tesla (TSLA) stock has a clear path toward $400 per share, Stifel Nicolaus’ James Albertine said after the electric-car maker announced its Q3 results, which it beat nicely on revenue and EPS. The company handed in earnings of $0.02 per share for the quarter versus EPS expected loss of $0.01. Revs in the three months ended in September jumped 55% year-over-year to reach $932M, above the consensus estimates of $893M. On a GAAP basis, the company lost $75M, or $0.60 a share. Tesla also lowered Q4 guidance to a range of $0.30 to $0.35 on fewer-than-expected Model S deliveries for the year. Analysts had expected Q4 earnings guidance of about 75 cents a share.

Albertine said Wednesday on CNBC’s “Fast Money” he was looking at one positive metric.

“I think demand is there, and, quite frankly, 28%, or slightly higher than 28%, gross margin is what I’d be focused on—and the unchanged outlook for 2015,” he said.

Tesla said Wednesday it delivered 7,785 EVs during the July-September period. That was slightly below its guidance of 7,800 but up 41.5% year-over-year.

Albertine has a “Buy” rating and a $400 12-month case base estimate on the stock.

Tesla shares rose less than 1% in after-hours trading to $241.32. The Palo Alto-based company, which is currently valued at $30.06B, has a median Wall Street price target of $300. TSLA is up 48.72% year-over-year, and 63.88% year-to-date as of the close of trading on Thursday.

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