Investing.com – Here's a professional summary of the most important pieces of information Wall Street analysts said over the past week.
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Tesla
What happened? New Street on Monday upgraded Tesla Inc (NASDAQ:) to buy with a price target of $460
*Tilder: Tesla's growth is accelerating again with new models. Analysts see a long-term upward trend.
What's the full story? New Street analysts expect growth in the auto sector to accelerate again with Tesla launching lower-cost models and cost reductions that balance the price cuts. Analysts highlight that progress in Tesla's Full Self-Driving (FSD) technology is accelerating, with potential launches of partially unattended FSD and Robotaxi test fleets expected this year. While the path to large-scale deployments remains difficult, they expect Tesla's stock price to reflect these growing opportunities.
Significant long-term upside is observed, with a potential market cap of $4.7 trillion envisioned by 2030 if Tesla turns the FSD opportunity into a dominant fleet of robotaxis. Although acknowledging uncertainties such as weak demand and the timing of new models, which could pressure the stock in the short term, analysts argue for a further rise in Tesla's stock price. They view the risk-reward of owning Tesla stock as positive.
apple
What happened? On Tuesday, MoffettNathanson downgraded Apple (NASDAQ:) to sell with a price target of 188.
*Tilder: Apple shares rise despite negative news. Analysts lower their rating to sell.
What's the full story? MoffettNathanson analysts note that although Apple shares have been rising steadily over the past few months, the fundamental news has been largely negative. Analysts initially positioned Apple as a potential AI leader, but noted that success has already been priced into its extended valuation. They highlighted significant risks, including the antitrust case against Alphabet (NASDAQ:) and the weak outlook in China, that the market ignored.
Furthermore, analysts pointed to disappointing consumer reactions to Apple's AI features and a challenging outlook for fully agentic AI. Considering these factors, they expressed concerns about Apple's high and low growth rate compared to its peers. As a result, MoffettNathanson downgraded Apple to a sell rating with a target price of $188, citing an unattractive outlook for its shares.
Twilio company
What happened? On Wednesday, Mizuho upgraded Twilio Inc (NYSE:) to outperform with a price target of $140.
*Tilder: Twilio was upgraded ahead of its investor day. Analysts see a significant rise.
What's the full story? Mizuho analysts upgrade Twilio ahead of its January 23 investor day. They cite three reasons: significant stability in net revenue and improved revenue visibility, significant improvement in operating margin, and the possibility of a new share buyback announcement. Analysts believe that greater clarity on these drivers will support the stock's outperformance.
Analysts expect significant upside potential for Twilio's non-GAAP operating income estimates in 2025 and beyond. They expect a 10% and 15% rise in 2025 and 2026, respectively, due to the sector breaking even, operating leverage in core communications, and the end of the cash bonus program. Additionally, they highlight that management compensation tied to operating income targets and closely tracking free cash flow will contribute to raising the long-term operating margin target to over 22% at the next Investor Day.
McDonald's
What happened? On Friday, Citi upgraded McDonald's (NYSE:) to buy with a price target of $334.
*Tilder: McDonald's will benefit from volume in 2025. Analysts expect growth.
What's the full story? Citi analysts expect McDonald's will leverage its scale advantages in 2025 to drive stock gains in key markets and restore margins and EBIT growth. They believe MCD has addressed the national value challenge by allowing franchisees to use core element pricing to manage profitability, and they expect national advertising in 2025 to regain lost occasions, driving 3%+ corporate US growth and multiple expansion.
Analysts see improved US sales and stock gains driven by a revamped value platform, national messaging, new products and efficient use of apps. She highlights greater control over real estate, better demand from franchisees, and influence in China as factors contributing to increased visibility in revenue growth. Despite challenges outside the US, they expect improving consumer conditions and stock gains in 2025 based on value strategies.
