Stifel Initiates Tesla at a Buy Rating with a $265 Price Target

Tiger Newspress06-26

Stifel opened coverage on Tesla in the bull camp and foresees a rebound ahead.

Analyst Stephen Gengaro initiated the electric vehicle maker at a buy rating with a $265 price target. Gengaro’s target implies 41.4% upside from Tuesday’s closing level.

Tesla shares gained 3.3% in morning trading.

“We believe TSLA is very well positioned to deliver robust multi-year growth in 2025-27+,” he wrote to clients in a Tuesday note.

A revamp to Model 3 and Model Y cars should boost sales in the near term, the analyst said. Then, he said the start of production on its next-generation vehicle called the Model 2 should aid demand.

Tesla’s full-self driving initiative can also bring value through sales, licensing and the potential RoboTaxi opportunities, Gengaro said.

To be sure, he cited lackluster first-quarter earnings, challenges with broader electric vehicle adoption and the U.S. election as potential risks to performance in the near term.

Gengaro’s call suggests shares can see a big bounce after a tough year. The stock has dropped more than 24% so far in 2024, meaning it has sat out of the broader market’s ascent.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • AlanTLK
    06-26
    AlanTLK
    Can't wait to see the shorts die.
  • MIe
    06-26
    MIe
    Tesla upside 
Leave a comment
2
2