Baird analyst Ben Kallo increased his price target on Tesla Inc. TSLA, -10.34% shares to $465 from $411 on Thursday, writing that he believes investors will start thinking about the company as one that can be "sustainably profitable" rather than as a perpetual money loser. "We think Tesla's transition to becoming sustainably profitable will transform the narrative around the company and should coincide with positive catalysts (including new product introductions/production, international Model 3 deliveries, China factory, etc.) which should drive shares higher," wrote Kallo, who has an outperform rating on the stock. Kallo said that while Tesla executives have said that they don't anticipate needing a capital raise, he expects that doing so "would remove lingering liquidity concerns and could be prudent to strengthen the balance sheet and insulate against risks of a broader global slowdown." The stock is up 1% in premarket trading Thursday, and it's gained 18% so far this year. The S&P 500 SPX, -2.37% has dropped 0.8% in that time.