Tesla (TSLA) PT Raised to $215 at Citi, 'we see more compelling NT risk/reward elsewhere'
Citi analyst Itay Michaeli raised the price target on Tesla (NASDAQ: TSLA) to $215.00 (from $175.00) while maintaining a Neutral rating.
The analyst comments " We’re raising our price target to $215 from $175 largely on a higher target multiple (DCF EV/EBITDA to 25x vs. 16.5x prior) reflecting both the positive results of our Vehicle Density Survey, as well as our view that greater investor focus/appreciation across SW/AI-defined vehicles could lead to sustained multiple expansion given Tesla’s strong position across EE/A, software and speed-to-market. Why not upgrade to Buy? (1) We still see near-term risks to pricing/margins, including in China where the NEV market remains highly competitive. We don’t think we’re out of the woods in the 2023 supply/demand debate, which could come under greater focus as we near Q2 reporting. (2) While we do view Tesla to be very well-positioned for SW/AI opportunities, we still want to see more evidence that FSD can evolve to something more than a L2 feature, since that’s where we see a lot of future value within broader installed-base economics. (3) At the current valuation, we see more compelling NT risk/reward elsewhere."