Tesla (TSLA) gets higher price target from Mizuho Securities ahead of Q1 earnings

Despite recent headwinds seemingly brought about by a tragic Model S crash in Texas this weekend, Tesla (NASDAQ:TSLA) is still receiving some positive outlooks from noted finance firms in the lead up to its first-quarter earnings call. Among the most recent of these is Mizuho Securities, which raised its TSLA price target to $820 per share while maintaining its “Buy” rating for the company.

Prior to its new price target, Vijay Rakesh, an analyst for Mizuho Securities, had a $775 per share price target for Tesla. In a note to clients on Tuesday, Rakesh stated that Tesla and fellow EV-only company NIO are positioned well in the secular electric car market as veteran carmakers continue to struggle in their efforts to balance their portfolios between traditional and sustainable vehicles. 

Rakesh also provided what he believed were factors that would be key to the electric car maker’s performance in the first quarter. 

“We believe key to MarQ results are 1) Deliveries; both TSLA and NIO reported upside to MarQ deliveries, with TSLA deliveries up 109%y/y on strong Model 3/Y ramps… 2) Increases to the 2021 outlook; We believe Q1 results could position both (TSLA and NIO) to raise the 2021 shipment/delivery outlook, 3) For Tesla, we believe a weaker product mix with 3/Y, the Fremont facility shutdown, and model changeovers could be a GM headwind that may reverse in the JunQ.  

“We continue to see a vertically integrated TSLA and NIO well-positioned in a secular EV market as legacy OEMs struggle to balance portfolios between legacy combustion engines and EVs. Reiterating our Buy on both TSLA/NIO; raising TSLA estimates and PT to $820 (prior $775) with stronger MarQ deliveries,” the analyst wrote. 

With these factors in mind, the analyst has raised the firm’s estimates on Tesla’s revenue and earnings per share for the first quarter of 2021, from $10.0 billion and $0.69 per share to $10.7 billion and $0.72 per share.

Tesla will be holding its Q1 2021 earnings call on Monday, April 26, 2021, at 2:30 pm Pacific Time or 5:30 pm Eastern Time.

Disclaimer: I am long TSLA.

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