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Tesla & 2 Other Upgrades to Watch

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Tesla (TSLA - Free Report) shares soared in today’s session, adding 10% following a recent upgrade from Morgan Stanley’s Adam Jonas. The updated price target for Tesla shares now sits at $400 per share (street high), up from the previous $250 per share target.

We see analyst upgrades and downgrades daily, commonly coming paired with updated price targets. They can be helpful tools for investors, providing a more structured plan and helping to inject positivity surrounding future performance.

Of course, stocks don’t straightforwardly reach price targets, as unforeseen circumstances can always influence performance. Overall, the shift in sentiment can be seen as a primary takeaway from these upgrades.  

Outside of Tesla, several other companies, including McDonald’s (MCD - Free Report) and Owens Corning (OC - Free Report) , have seen recent upgrades among analysts. Let’s take a closer look at each.

Tesla

Tesla’s upgrade was centered around optimism for its custom supercomputer, Dojo, which is expected to generate remarkable value for the EV titan as it continues its push into its ‘Full Self-Driving’ capabilities.  

The supercomputer has been under considerable attention for some time now, especially as artificial intelligence (AI) grips the world. It’s a considerably bullish call, with the new $400 per share price target reflecting 53% upside from current levels.

Owens Corning

Owens Corning is a world leader in building materials systems and composite solutions. Goldman Sachs updated its price target for OC shares from $113 per share to $150 per share.

The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a favorable Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Owens Corning recently posted quarterly results well above expectations, exceeding the Zacks Consensus EPS Estimate by more than 25% and delivering a 2% revenue surprise. Shares have been boosted following back-to-back releases, as we can see illustrated below.

Zacks Investment Research
Image Source: Zacks Investment Research

McDonald’s

We’re all familiar with McDonald’s, seeing those golden arches at seemingly every turn. Wells Fargo recently upgraded MCD shares to overweight from equal weight, with a $310 per share price target.

Like OC, analysts have become bullish on McDonald’s earnings outlook, with earnings expectations increasing modestly across all timeframes. The stock is currently a Zacks Rank #2 (Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

The company is forecasted to post solid growth in its current year, with Zacks Consensus Estimates suggesting 13% earnings growth on 10% higher revenues.

Bottom Line

Price targets can be helpful tools. Of course, it’s critical to note that not all stocks reach these forecasted levels, as unforeseen circumstances can always affect future performance. 

Still, the positivity surrounding upgrades can be seen as a solid takeaway. And positivity is precisely what Tesla (TSLA - Free Report) shares enjoyed in today’s session, tacking on 10% in value.

Outside of Tesla, McDonald’s (MCD - Free Report) and Owens Corning (OC - Free Report) have also received recent favorable upgrades.


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