Tesla stock price target lowered to $482 from $490 at Canaccord Genuity

Investing.com - Canaccord Genuity lowered its price target on Tesla (NASDAQ:TSLA) to $482 from $490 on Thursday while maintaining a Buy rating on the electric vehicle maker’s shares. The company, currently valued at $1.46 trillion, has delivered impressive returns with a 105% gain over the past year according to InvestingPro data.

The firm’s adjustment primarily reflects higher operating expense assumptions that impact earnings per share estimates. Canaccord reduced its 2028 non-GAAP EPS forecast to $11.46 from $11.65 previously.

Despite the slight reduction in price target, Canaccord expressed increased conviction about Tesla’s ability to maintain growth momentum without entering what it called a "growth time-out" period.

The firm applies a multiple of approximately 42 times its 2028 estimated earnings per share to reach the $482 target, which it considers reasonable given Tesla’s "long tailed generational growth opportunities" in robotics, autonomy, energy storage, and what it terms "sustainable abundance."

Canaccord noted that its valuation represents about twice the multiple of other "Mag 7" stocks, which trade at approximately 21 times 2028 estimated earnings, acknowledging that "the margin for error is slim" with this multiple and the operational improvements implied in its estimates.

In other recent news, Tesla reported third-quarter revenue of $28.1 billion, surpassing Street expectations by 6%, although its non-GAAP earnings per share of $0.50 fell short by $0.06 compared to consensus estimates. Analysts from Stifel, who maintained a Buy rating with a $483 price target, noted that revenue, gross profit, and EBITDA exceeded projections, although earnings per share did not meet expectations. Mizuho raised its price target for Tesla to $485, citing the potential in AI and Full Self-Driving (FSD) technologies, while maintaining an Outperform rating. Meanwhile, Goldman Sachs reiterated a Neutral rating with a $400 price target, mentioning the automotive non-GAAP gross margin of 15.4%, which was below the expected 16%. Barclays kept its Equalweight rating with a $350 price target, highlighting CEO Elon Musk’s focus on AI-driven initiatives like Robotaxi and Optimus. TD Cowen reiterated a Buy rating and set a $509 price target, despite acknowledging short-term industry challenges. These developments reflect varied analyst perspectives on Tesla’s recent performance and future potential.

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