Institutions adjust price target for $TSLA ahead of 2024Q2 earnings
Several organizations, including Wedbush, Morgan Stanley and Citi, adjusted their price targets for Tesla after the company reported second-quarter earnings.
WEDBUSH
Wedbush raised its price target by $25 to $300 from $275, which it noted is a “major turning point in bullishness.”
Dan Ives of Wedbush said:
“The key to Tesla’s stock is street recognition that Tesla is the most undervalued AI stock on the market. On Aug. 8, Musk and Tesla’s historic Robotaxi Day will open a yellow brick road to the FSD and self-driving future.”
MORGAN STANLEY
Morgan Stanley did not raise its price target, but adjusted the details of how much the energy sector is reflected in its $310 valuation.
Previously, energy accounted for only $360 per share of the $310 price target, but after this quarter, energy accounted for $50 per share.
“It’s not surprising that investors are beginning to consider the possibility that Tesla Energy could be worth more than Tesla cars,” Morgan Stanley’s Adam Jonas said in a note.
CITI
Citi raised its outlook for Tesla to $274 from $182 and noted that AI and subsequent car developments should justify this rise.
Citi analysts said the stock price rise did not stem from “core EV fundamentals,” but from the execution of future projects:
“The second-quarter delivery performance was encouraging, which raises estimates and supports Citi’s underlying outlook for improved EV sentiment over the summer. However, unless there are new products and AI catalysts, the core EV fundamentals alone will not be able to significantly support further gains in Tesla stock.”
MIZUHO
Mizuho maintained a “neutral” rating but raised its price target on Tesla stock to $230 from $180; it also said it does not rely on EV fundamentals, instead AI, particularly the Robotaxi and Optimus humanoid robots, will be a major driver of the valuation boost.
Mizuho’s analysts said such catalysts “may be much more difficult to obtain” but could be a significant factor in price increases.