Analyst Stephen Gengaro from Stifel Nicolaus maintained a Buy rating on Tesla (TSLA – Research Report) and decreased the price target to $474.00 from $492.00.
Stephen Gengaro has given his Buy rating due to a combination of factors influencing Tesla’s performance and future potential. Despite mixed fourth-quarter results and external uncertainties, Tesla showed promising signs such as achieving a record low cost of goods sold per vehicle. This improvement in cost efficiency is a positive indicator for future profitability.
Furthermore, Tesla’s plans to introduce a lower-priced vehicle in the first half of 2025 could significantly expand its market reach. The expected launch of unsupervised Full Self-Driving (FSD) in Texas, along with a strong outlook for the Energy Storage division, adds to the long-term growth potential of the company. However, it is important to note challenges like ongoing pricing pressures and low favorability ratings, which could impact short-term sales. Nonetheless, Gengaro’s rating reflects a belief in Tesla’s strategic initiatives and innovations as key drivers of future value.
Gengaro covers the Energy sector, focusing on stocks such as Baker Hughes Company, Solaris Energy Infrastructure, and Liberty Oilfield Services. According to TipRanks, Gengaro has an average return of 4.6% and a 41.73% success rate on recommended stocks.
In another report released on February 3, Piper Sandler also reiterated a Buy rating on the stock with a $500.00 price target.