Investing.com — Here’s your professional summary of Wall Street analysts’ top takeaways over 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 advantages.
What is the full story? New Street analysts predict growth in the auto sector will accelerate again with Tesla launching lower-cost models and cost reductions balancing price cuts. Analysts highlight that progress on Tesla’s fully self-driving (FSD) technology is accelerating, with potential launches of partially unattended robotaxi and FSD test fleets expected this year. While the path to large-scale deployments remains challenging, they anticipate Tesla’s stock price will reflect these growing opportunities.
Significant long-term upside is seen, forecasting a potential market capitalization of up to $4.7 trillion by 2030 if Tesla transitions the FSD opportunity to a dominant robotaxis fleet. Despite acknowledging uncertainties such as weak demand and the launch schedule of new models, which could put pressure on shares in the short term, analysts justify a further rise in Tesla’s share price. They consider the risk-reward ratio of owning Tesla shares positive.
Apple
What happened? On Tuesday, MoffettNathanson downgraded Apple (NASDAQ 🙂 to Sell with a price target of 188.
*TLDR: Apple shares rise despite negative news. Analysts downgrade the rating to Sell.
What is the full story? Analysts at MoffettNathanson note that even though Apple stock has risen steadily over the past few months, the underlying news has been largely negative. Analysts initially positioned Apple as a potential leader in AI, but noted that this success was already factored into their stretched valuation. They highlighted major risks, including an antitrust case against Alphabet (NASDAQ 🙂 and weakening prospects in China, which the market had overlooked.
Additionally, analysts pointed to disappointing consumer responses to Apple’s AI features and the challenging prospects for fully agentic AI. Taking these factors into account, they expressed concern about Apple’s high multiple and low growth rate compared to its peers. As a result, MoffettNathanson downgraded Apple to Sell 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 price target of $140.
*TLDR: Twilio updated ahead of Investor Day. Analysts see important advantages.
What is the full story? Mizuho analysts update Twilio ahead of Investor Day on January 23. They cite three reasons: significant revenue stabilization and improved revenue visibility, significant operating margin improvement, and the possibility of a new share buyback announcement. Analysts believe that greater clarity on these factors will support the stock’s outperformance.
Analysts foresee significant upside potential for Twilio’s non-GAAP operating income estimates in 2025 and beyond. They project a 10% and 15% increase in 2025 and 2026, respectively, due to Segment reaching breakeven, operating leverage in core communications, and the end of a cash bonus program. Additionally, they highlight that management compensation tied to operating income targets and close monitoring of free cash flow will help raise the long-term operating margin target to over 22% by the upcoming Investor Day.
McDonald’s
What happened? On Friday, Citi upgraded McDonald’s (NYSE:) to Buy with a price target of $334.
*TLDR: McDonald’s will leverage scale in 2025. Analysts predict growth.
What is the full story? Citi analysts forecast McDonald’s (MCD) will leverage its scale advantages in 2025 to drive share gains in key markets and recover margins and EBIT growth. They believe MCD has addressed the national value challenge by allowing franchisees to use base item pricing to manage profitability, and expect national advertising in 2025 to make up for lost opportunities, driving comp growth of more than 3%. in the US and multiple expansion.
Analysts see improving U.S. sales and share gains driven by a revamped value platform, national messaging, new products and effective use of apps. They highlight greater real estate control, better demand from franchisees and influence in China as factors contributing to greater visibility of revenue growth. Despite challenges outside the US, they hope to improve consumer conditions and share profits in 2025 based on value strategies.