Jefferies revised its Tesla (NASDAQ: TSLA) stock price target upwards from $350 to $400 on Monday, October 12, while maintaining a “Neutral” rating on the carmaker.
Analyst Philippe Houchois argued that Tesla’s non-automotive businesses are showing signs of acceleration, which he thinks justifies the higher price target.
The new price target represents a roughly 14% increase and reverses the bank’s price-target cut made roughly two months earlier, when it lowered the target from $400 to $350. Compared to the press-time TSLA share price of $, the figure implies roughly 4.7% upside.
Advertisement
Despite the higher target, the unchanged rating suggests the firm remains cautious about the stock’s upside, even as Tesla reported third-quarter deliveries of 486,532 vehicles, exceeding Wall Street expectations.
The adjustment also comes as analysts assess Tesla’s automotive performance alongside its non-automotive businesses and the potential for a closer relationship with SpaceX (NASDAQ: SPCX).
RBC maintains its Tesla stock price target
On the same day, Canadian bank RBC maintained both its “Outperform” rating and $480 Tesla price target ahead of the company’s third-quarter results.
As seasonally adjusted annualized sales rates (SAAR) point to favorable pricing for automakers, analyst Tom Narayan remains positive that Tesla can again deliver positive results, as it exceeded expectations for vehicle deliveries in the second quarter as well.
Compared to the figure given by Jefferies, RBC’s Tesla price forecast suggests the stock could rally approximately 25.5% over the next 12 months.
Wall Street Tesla stock price forecast
Overall, Wall Street appears cautiously optimistic on the carmaker. The average Tesla share price target for the next 12 months sits at $404, based on TipRanks data, which suggests 5.8% upside from the current levels.
Advertisement
Similarly, Tesla enjoys a “Moderate Buy” consensus rating, based on a total of 27 analyst calls over the last three months, which have included 14 “Buy,” 11 “Hold,” and two “Sell” recommendations.
Featured image via Shutterstock
