Option Millionaires

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Tesla price target raised to $465 from $411 at Baird
Baird analyst Ben Kallo reiterated an Outperform rating on Tesla and raised his price target to $465 from $411. In a research note to investors, Kallo says he believes that the narrative will continue to change from 'Tesla will never make money' to 'Tesla can be sustainably profitable,' adding that the narrative on Tesla, particularly in the middle of 2018, "was as negative as we have experienced in our coverage, but we believe sentiment will continue to improve as the company proves it can be self-supportive," which should drive sustained share appreciation. Kallo also believes the narrative on valuation will start to shift during 2019, from an overvalued stock to one which provides growth at a reasonable price and that Tesla's valuation is justified, particularly compared to peers. Importantly, Kallo says he does not believe the company's strong Q3 results were a "flash in the pan" and thinks the automaker can maintain profitability