Truist ups Tesla target but ‘incrementally cautious’ after rally

Truist raised the firm’s price target on Tesla to $360 from $238 and keeps a Hold rating on the shares. The firm reiterated a cautious semiconductor and artificial intelligence sector view, but is more constructive on Nvidia (NVDA) and Monolithic Power (MPWR) while more cautious on Tesla (TSLA). Truist “incrementally cautious” on Tesla following the stock’s recent doubling. The analyst believes “very little” of the stock move is linked to the company’s Q3 results or outlook, and most of the move is linked to Elon Musk’s “sudden favor” with President-elect Trump. Truist is taking a “very open-minded” view to the ability of Tesla’s various businesses to generate positive cash flows, but sees “somewhat elevated risks now “that so much value is ascribed to artificial intelliotence and its other businesses “that have no marketable product, let alone cash flow, today.”