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Investing.com - Canaccord Genuity raised its price target on Tesla (NASDAQ:TSLA) to $333.00 from $303.00 on Thursday, while maintaining a Buy rating on the electric vehicle maker's shares. According to InvestingPro data, Tesla's stock has delivered a robust 54% return over the past year, despite trading at a significant premium to its Fair Value.
The price target increase represents a multiple of approximately 38 times the firm's 2027 estimated non-GAAP earnings per share of $8.77 for Tesla.
Canaccord Genuity justified the premium multiple by comparing Tesla to a group of megacap tech stocks including Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA), which trade at a median of about 24 times 2027 estimated earnings but have a combined revenue growth rate "materially below Tesla's" for the 2025-2027 period.
The firm highlighted Tesla's "generational set of growth opportunities" including electric vehicles, autonomy/AI, energy storage, and robotics as additional factors supporting the premium valuation multiple.
Despite acknowledging "limited upside implied by our price target," Canaccord Genuity maintained its Buy rating, citing "near-term volatility buttressed by the long-term opportunities beyond the next 12 months."
In other recent news, Tesla Inc. announced its second-quarter 2025 earnings, which met market expectations for earnings per share (EPS) and slightly exceeded revenue forecasts. The company's EPS was reported at $0.40, aligning with analysts' predictions. Tesla's revenue reached $22.5 billion, marginally surpassing the anticipated $22.4 billion. These earnings results are crucial for investors as they reflect the company's financial performance for the quarter. Despite the earnings and revenue outcomes, the stock experienced a minor decline in aftermarket trading. Investors and analysts are closely monitoring these developments for further insights into Tesla's financial health. The alignment of Tesla's EPS with market expectations highlights the accuracy of analysts' projections. Such financial results continue to be a focal point for stakeholders assessing the company's performance.
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