Tesla TSLA Remains Top Pick at Baird with $250 PT Ahead Q2 Report

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Tesla is getting support from analysts ahead of its Q2 2023 delivery and financial results report. Baird reaffirmed its Overweight rating and $252 target price. The firm continues to consider Tesla the best pick of the year.

Tesla will report delivery results this weekend, and Q2 2023 financial results towards the end of next month. Investment firms continue to publish their estimates based on the latest information. Some do not have high expectations, while others are positive about Tesla's success in Q2.

Baird continues to consider the company the best pick of the year. The firm reiterated its Overweight rating and $252 target price, slightly above Tuesday's opening price. Baird wrote that it believes the current decline is only temporary and investors are looking to reduce risk. However, buyers will return after the announcement of the results.

Analysts wrote in a note (via investing.com), “We consider TSLA a core holding and continue to like it as a Best Pick for the year. With that said, we think sentiment headed into the quarter is negative and stock likely trades down into the quarter which should be low point for gross margins. Although we are cautious into the print, we think it will be a ‘derisking’ event and buyers are likely to step in following results. We recommend waiting closer to results to accumulate additional shares. Deliveries should be released by July 3.”

Although Tesla had a great rally in June, Baird believes investors continue to be cautious. The firm believes that the focus of investors now will be on Q2 deliveries. Analysts expect the company to post the lowest gross margin for the year as well. Pressure on investors will continue until the publication of Q2 results.

Baird estimates that Tesla will report 423,100 deliveries for the quarter, compared to the consensus forecast of 445,000.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.