Tesla price target raised to $551 from $482 at Canaccord

Canaccord raised the firm’s price target on Tesla (TSLA) to $551 from $482 and keeps a Buy rating on the shares. The firm reduced its Q4 delivery outlook for Tesla to 427,000 from 470,000, citing a sharper than anticipated deterioration in demand, with weakness broad-based across products and regions. However, even with the Q4 estimate cut, Canaccord sees “constructive developments beneath the surface” for Tesla. The recent share rally shows the market is looking through Q4, the analyst tells investors in a research note. The firm believes the end of U.S. electric vehicle subsidies, while a near-term drag on demand, is “forcing a healthier, more durable market to emerge.” Tesla “still stands alone in the U.S. with a truly scaled, integrated EV franchise,” according to Canaccord. Meanwhile, the analyst believes electric vehicle adoption is “rising quickly” in emerging markets such as Thailand, Vietnam, and Brazil. Tesla’s robotaxi rollout is progressing, the firm adds. Canaccord says the company’s underlying positives outweigh the near-term earnings reset.