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Investing.com - Truist Securities raised its price target on Tesla (NASDAQ:TSLA) to $406.00 from $280.00 on Thursday, while maintaining a Hold rating on the electric vehicle maker’s stock. The company, currently trading at $425.03 with a $1.41 trillion market cap, commands premium valuation multiples across key metrics according to InvestingPro data.
The price target increase follows Tesla’s mixed third-quarter results, which were reported without forward guidance from the company, continuing its recent practice of not providing outlook information. With analyst price targets ranging from $120 to $600, the stock shows significant variance in market expectations.
Truist Securities noted that Tesla’s near-term auto delivery data and earnings results are becoming "decreasingly relevant" to the company’s stock price, as most of the value is now tied to artificial intelligence projects. For deeper insights into Tesla’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis and 19 additional ProTips.
The firm specifically highlighted Tesla’s Full Self-Driving (FSD) technology, robotaxi service, and Optimus robot as key AI initiatives that remain "quite unproven" with "close to zero revenue" but are "potentially extremely valuable."
Truist Securities’ updated discounted cash flow (DCF) analysis led to the new $406 price target, with the firm also providing thoughts on Tesla’s valuation, AI project potential, and a new FSD review offering both optimistic and pessimistic perspectives.
In other recent news, Tesla reported third-quarter results that exceeded expectations in revenue, gross margin, and free cash flow, driven by record vehicle deliveries and growth in its energy generation and storage segment. However, adjusted earnings per share were slightly below consensus estimates. Following these results, Cantor Fitzgerald raised its price target for Tesla to $510, citing strong performance, while maintaining an Overweight rating. Meanwhile, Canaccord Genuity adjusted its price target from $490 to $482, reflecting higher operating expense assumptions impacting earnings per share estimates, but retained a Buy rating. Stifel also reiterated a Buy rating with a $483 price target, describing the results as "likely about neutral" for the stock. Barclays maintained its Equalweight rating with a $350 price target, noting Tesla’s focus on opportunities in AI-driven initiatives like Robotaxi and Optimus. Needham, on the other hand, held its Hold rating, considering the stock fairly valued against aggressive estimates for long-term projects. These developments highlight the varied analyst perspectives on Tesla’s financial performance and strategic direction.
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