Tesla price target raised to $126 from $122 at Guggenheim

Guggenheim raised the firm’s price target on Tesla to $126 from $122 and keeps a Sell rating on the shares. Tesla reported Q1 results with materially better gross margin performance than the firm’s and buyside expectations, which overshadowed “what we interpreted as a negative shift in the next-gen vehicle plans,” says the analyst, who would expect shares to trade higher following results as negative revisions are likely on pause given the strong gross margin performance. However, the firm also thinks investors looking to underwrite long-term growth of the next-generation platform “likely did not get the updates they were looking for from the call, and could become incremental sellers into strength,” added the analyst, who cites better unit economics for the firm’s increased target.