Investing.com — This is your Pro Recap of the top Wall Street analyst takeaways from the past week.
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Tesla
What happened? On Monday, New Street upgraded Tesla Inc (NASDAQ: ) to Buy with a price target of $460
*TLDR: Tesla’s growth will accelerate again with new models. Analysts see long-term gains.
What is the whole story? New Street analysts predict growth in the auto sector will pick up again with Tesla’s launch of cheaper models and cost reductions offsetting price cuts. Analysts stress that Tesla’s technological advancements in fully self-driving (FSD) are accelerating, with the potential launch of partially unsupervised FSD and robotaxi test fleets expected this year. While the road to large-scale deployment remains challenging, they predict Tesla’s stock price will reflect these growing opportunities.
Significant long-term growth has been seen, predicting a potential market capitalization of up to $4.7 trillion by 2030 if Tesla switches the FSD capability to a dominant robotaxi fleet. Despite acknowledging uncertainties such as weak demand and the timing of new models, which could weigh on the stock in the short term, analysts are justifying further growth in Tesla’s share price. They believe that the risk and profit of owning Tesla shares is positive.
Apple
What happened? On Tuesday, MoffettNathanson cut Apple (NASDAQ: ) to Sell with a price target of 188.
*TLDR: Apple shares rise despite negative news. Analysts downgrade to sell.
What is the whole story? Analysts at MoffettNathanson note that despite the steady rise in Apple shares over the past few months, the underlying news has been mostly negative. Analysts initially positioned Apple as a potential leader in the field of artificial intelligence, but noted that this success is already factored into its extensive valuation. They highlighted significant risks, including an antitrust case against Alphabet (NASDAQ: ) and a weakening outlook in China, which the market had overlooked.
Moreover, analysts pointed to disappointing consumer reactions to Apple’s AI features and challenging prospects for fully agentic AI. Given these factors, they expressed concern about Apple’s high multiple and low growth rate compared to its competitors. As a result, MoffettNathanson downgraded Apple to a sell rating with a $188 price target, citing an unattractive outlook for its stock.
Twilio Inc.
What happened? On Wednesday, Mizuho (NYSE: ) upgraded Twilio Inc (NYSE: ) to Outperform with a $140 price target.
*TLDR: Twilio was upgraded ahead of Investor Day. Analysts see significant progress.
What is the whole story? Mizuho analysts are giving Twilio a boost ahead of its January 23 Investor Day. They cite three reasons: significant revenue stabilization and improved revenue visibility, significant operating margin improvement and the potential for a new share buyback announcement. Analysts believe greater clarity on these drivers will support better stock performance.
Analysts anticipate significant upside potential for Twilio’s non-GAAP operating income estimates in 2025 and beyond. They predict growth of 10% and 15% in 2025 and 2026, respectively, due to the segment reaching breakeven, operating leverage in basic communications and the end of the cash bonus program. Additionally, they point out that management compensation tied to operating income targets and close monitoring of free cash flow will help lift the long-term target operating margin to more than 22% at the upcoming Investor Day.
McDonald’s
What happened? On Friday, Citi upgraded McDonald’s (NYSE: ) to Buy with a $334 price target.
*TLDR: McDonald’s to increase scale in 2025. Analysts predict growth.
What is the whole story? Citi analysts predict that McDonald’s ( MCD ) will use its size advantages in 2025 to increase shares in key markets and restore margins and EBIT growth. They believe MCD has solved the national value challenge by allowing franchisees to use core item pricing to manage profitability and expect national advertising to recover lost opportunities in 2025, driving 3%+ US business growth and multi-fold expansion.
Analysts see U.S. sales improvement and share gains driven by a renewed value platform, national messaging, new products and efficient use of apps. They point to greater real estate control, better franchisee demand and influence in China as factors contributing to higher growth visibility for top companies. Despite challenges outside the US, they expect improving consumer conditions and share gains in 2025 based on value strategies.
