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Investing.com -- Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.

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Tesla (NASDAQ:TSLA)

What happened? On Monday, Baird downgraded Tesla to Neutral with a $320 price target.

*TLDR: Tesla soars on robotaxi hype. Baird sidelines. Long-term potential remains; questions persist.

What’s the full story? Baird notes Tesla’s 24% post-earnings surge—smoking the S&P 500’s 13%—is fueled by hype around its June affordable vehicle and robotaxi launch. But the analysts aren’t buying Musk’s grand robotaxi promises, calling his ramp-up projections overly optimistic and already priced into shares.

Adding to the chaos: Musk’s chummy ties to Trump, which inject a fresh layer of political risk into Tesla’s brand. While Baird views Tesla as a core long-term play, they’re stepping back for now, wary of unanswered questions around the robotaxi rollout, Musk’s political theatrics, and the timeline for Optimus, Tesla’s robotics venture.

Despite these near-term uncertainties, Baird still sees Tesla as a heavyweight contender over the long haul, with massive potential in robotaxis and robotics. For now, though, they’re content to sit on the sidelines as Musk’s circus rolls on.

The market’s betting big on his vision, but Baird isn’t convinced the math adds up—yet.

McDonald’s

What happened? On Tuesday, Redburn-Atlantic double downgraded McDonald’s to Sell with a $260 price target.

*TLDR: McDonald’s faces traffic declines domestically. Growth targets seem overly ambitious.

What’s the full story? McDonald’s US operations, accounting for 40% of system sales, remain a cornerstone of its financial performance and sentiment. Historically, it has outpaced the broader burger category in seven of the past ten years. Recently, though, traffic declines among lower- and middle-income consumers—each down c10%—have led to underperformance.

Redburn-Atlantic observes that McDonald’s has leaned heavily on pricing to drive growth, a strategy that bolsters near-term sales but raises sustainability concerns, especially as lower-income segments pull back. In contrast, Chipotle (NYSE:CMG) has achieved a more balanced mix of traffic and check growth, highlighting a potential area of vulnerability for McDonald’s.

The firm notes McDonald’s ambitious goal to expand from 40,000 to 50,000 global units by 2027, marking the fastest pace in its history. While International Operated Markets (20% of openings) and Developmental Licensed Markets (70%) are expected to drive this growth, the US will contribute just 10%.

Redburn-Atlantic acknowledges the rationale for international expansion in underpenetrated markets but cautions that consensus expectations for unit growth in 2027—accelerating by 65 basis points—are overly optimistic.

The firm models unit growth at 0.4% below consensus, reflecting a more tempered view on the achievability of these targets.

First Solar (NASDAQ:FSLR)

What happened? On Wednesday, Jefferies upgraded First Solar to Buy with a $192 price target.

*TLDR: Jefferies upgrades FSLR amid IRA uncertainty. U.S. manufacturing strengthens pricing power.

What’s the full story? Jefferies seizes the latest uncertainty surrounding the Inflation Reduction Act (IRA) to upgrade First Solar (FSLR) shares to Buy. Concerns over foreign entities of concern (FEOC) procurement have spiked, creating a temporary pullback in utility-scale solar. FSLR’s U.S.-made products stand to gain uniquely from stringent Chinese-import restrictions, likely to endure through Senate debates.

With FSLR positioned as the “only game in town,” its pricing power strengthens. The team raises average selling price (ASP) estimates to the high-20s by 2029, with potential upside into the low-mid 30s. While FSLR’s SE Asia operations face FEOC risks, management’s confidence in non-Chinese supply chains and potential onshore production by 2027 ($130M investment) bolster optimism.

The IRA’s impact on utility-scale solar remains manageable. Even in a downside scenario, Jefferies sees only a ~20% decline in 2027/2028, with FSLR capturing no more than two-thirds of the market. Domestic pricing premiums remain intact, supported by IRA adders, and recovery post-ITC rolloff in 2029 looks likely. The Senate’s upcoming discussions could provide further support, mitigating volume drops.

Valuation is compelling: FSLR trades at 7.5x 2026 P/E and 5.6x EV/EBITDA, a sharp discount to peers, despite a stronger 25% EBITDA CAGR. Jefferies raises the price target to $192, reflecting FSLR’s position as the sole large-scale U.S. domestic module manufacturer. The target blends DCF, EV/EBITDA, and P/E, plus a 45x premium.

Conagra Brands (NYSE:CAG)

What happened? On Thursday, BofA downgraded Conagra Brands to Underperform with a $20 price target.

*TLDR: BofA sees 10% downside risk. CAG faces margin and leverage challenges.

What’s the full story? BofA’s updated price objective reflects two key shifts: a 15% reduction in FY26-FY27 EPS estimates below consensus and a lower CY26 P/E multiple of 10x, down from 11x. This adjustment signals a 10% downside risk to the current share price. The bank’s revision stems from its assessment that CAG faces distinct headwinds in the packaged food sector.

Elevated inflation pressures in its protein-heavy cost of goods sold, coupled with diminished pricing power in its core single-serve frozen meals category, create challenges. Recent divestitures, including the June 3 sale of Chef Boyardee, while strategically positive long term, sacrifice margin and cash flow attractiveness in the near term. These moves, combined with $1.5 billion in near-term debt maturities, raise concerns about leverage targets and EBITDA erosion.

The bank now forecasts CAG’s net debt/EBITDA ratio to exceed its 3x target by FY26-end, reaching 3.2x. Additionally, BofA’s revised EPS estimates indicate a dividend payout ratio nearing 70%, well above CAG’s 50-55% target.

This prompts the bank to downgrade its income rating from 7 (same/higher) to 8 (same/lower), reflecting growing skepticism about CAG’s ability to balance operational pressures with financial obligations.

Zscaler (NASDAQ:ZS)

What happened? On Friday, Wells Fargo (NYSE:WFC) upgraded Zscaler to Overweight with a $385 price target.

*TLDR: Zscaler’s FY25 surge drives 20%+ growth; $5B ARR by FY27 achievable. Margins expand as revenue accelerates.

What’s the full story? Wells Fargo sees Zscaler’s FY25 unscheduled billings surge as the catalyst for 20%+ total billings growth by FY26. Momentum is accelerating—unscheduled billings jumped from 20% in 1Q25 to 28% in 3Q25, setting the stage for scheduled billings to fuel sustained expansion. The analyst predicts this trajectory locks in a robust growth runway, with FY26 poised to deliver.

The $5B ARR target by FY27? Achievable. Core products, growing at a 16% CAGR, must climb from $2.0B to $2.7B ARR. Emerging products, cranking at a 44% CAGR, leap from $1.1B to $2.3B. This dual-engine growth—core stability and emerging hypergrowth—propels Zscaler toward the $5B milestone.

Operating and free cash flow margins? Expanding. While already hitting long-term gross, operating, and FCF targets, Wells Fargo sees room for further upside as revenue accelerates. Zscaler’s path to $5B ARR isn’t just about top-line growth—it’s a margin expansion story too. The analyst bets on both.

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