CFRA upgraded Tesla shares from Hold to Buy and increased its price target from $875 to $1,250, based on a '24 P/E of 95.4x, justified by TSLA's earnings growth potential and strong execution.
CFRA analyst Garrett Nelson raised the price target for Tesla from $875 to $1,250. He indicated that he raised the 12-month target based on a '24 P/E of 95.4x, justified by TSLA's earnings growth potential and strong execution.
"We hike our 12-month target by $375 to $1,250, based on a '24 P/E of 95.4x justified by TSLA's earnings growth potential and strong execution. We raise our adjusted EPS estimates by $0.65 to $6.50 for '21, by $1.45 to $9.05 for '22, by $2.15 to $11.25 for '23, and introduce '24 at $13.10."
The catalyst for the price update was also because Tesla's Q4 2021 delivery data of 308,600 units, well above the consensus of 265,700. This also reflects a 71% increase over 2020.
In addition, the rating was raised as the manufacturer finished construction of its factories in Austin and Berlin, which will serve as a support for production growth in 2022 and beyond.
"After a year in which TSLA shares rose 50% ... we raise our opinion to Buy as the completion of new factories in Texas and Germany sets the stage for further growth in 2022 and beyond."
CFRA also believes that Model S Plaid sales will help drive the average realized price increase, and that the first deliveries of Cybertruck and Semi may come sooner than many expect.
The firm thinks that a near-term overhang in the form of tax-related stock sales by Tesla CEO Elon Musk has been lifted and a 13% pullback over the last two months provides a compelling entry point.
H/T @SawyerMerritt/Twitter
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
