Citi analyst Itay Michaeli raised the firm’s price target on Tesla to $274 from $182 and keeps a Neutral rating on the shares. The firm has “been more constructive” on near-term investor sentiment around Tesla, but says the strong stock run-up adds greater reliance on looming electric vehicle product and artificial intelligence catalysts. The Q2 delivery beat was also “encouraging,” which prompts increased estimates and supports Citi’s underlying call for improving EV sentiment this summer, the analyst tells investors in a research note. However, the firm believes core EV fundamentals alone are unlikely to support significantly further upside from here in Tesla shares absent new product and AI catalysts. “We’re not inclined to chase the stock here,” Citi contends.
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