Tesla price target raised to $404 from $298 at Canaccord

Canaccord analyst George Gianarikas raised the firm’s price target on Tesla (TSLA) to $404 from $298 and keeps a Buy rating on the shares. The firm says that despite Tesla’s weaker than expected Q4 deliveries, it is sticking with a Buy rating and raising the price target The multiple implied by the new target is justified based on the multiples and growth rates of Tesla’s comp set, which Canaccord deems to be a group of mega-cap tech stocks, including Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia, the analyst tells investors in a research note. The firm says this set of companies trades at a median of 23-times estimated 2027E earnings, but has a combined revenue growth rate half of Tesla’s from 2025-2027. Longer term, Tesla also has a “generational set of growth opportunities ahead,” including electric vehicles, autonomy, energy storage, and robotics, contends Canaccord. The firm acknowledges the limited upside implied by its price target but believes it is appropriate given the near-term volatility.