Top 5 Upgrades:
Seaport Research upgraded Netflix (NFLX) to Buy from Neutral with a price target of $1,385, up from $1,230. The firm thinks the shares' momentum, which has moderated lately, could be digesting the year-to-date +30% gains ahead of the advertising infrastructure build-related monetization momentum.
Jefferies upgraded AMD (AMD) to Buy from Hold with a price target of $300, up from $170. OpenAI's plans to buy six gigawatts of AMD equipment changes the company's "AI narrative," the firm tells investors in a research note.
JPMorgan upgraded Brinker (EAT) to Overweight from Neutral with a price target of $175, down from $180. The firm believes casual dining should benefit from low supply growth, value messaging, and tax benefits in 2026.
TD Cowen upgraded Veeva (VEEV) to Buy from Hold with a price target of $380, up from $297. The company is well positioned to post sales growth above consensus estimates due to multiple drivers, including the secular shift to large pharma insourcing and the Iqvia (IQV) partnership, the firm tells investors in a research note.
Evercore ISI upgraded Edwards Lifesciences (EW) to Outperform from In Line with a price target of $88, up from $80. Competitive fears have abated, and the firm sees a potential inflection in TAVR procedures, driven by asymptomatic TAVR.
Top 5 Downgrades:
Jefferies downgraded Dollar Tree (DLTR) to Underperform from Hold with a price target of $70, down from $110. The firm says inflation, management decisions, and tariffs "have turned a simple business model into a complex one."
Citi downgraded GE HealthCare (GEHC) to Neutral from Buy with a price target of $83, down from $93, ahead of the Q3 report. The firm sees the stock trading sideways given a lack of confidence in the company's mid-single-digit revenue growth outlook for 2026.
JPMorgan downgraded Synchrony (SYF) to Neutral from Overweight with a price target of $75, down from $80, as part of a Q3 earnings preview. The firm recommends the "relative defensiveness" of the general-purpose credit card issuers over Synchrony, which it says has a potentially lower position in the consumer payment hierarchy and higher delinquency rates.
Stephens downgraded CarMax (KMX) to Equal Weight from Overweight with a price target of $42, down from $53. After having listened to numerous client points of view, reconsidered the firm's prior analysis and data, and discussed the situation with industry participants, Stephens now concludes there is "likely more risk and potential stock downside than appreciation possibility over the next 12 months."
JPMorgan downgraded OneMain (OMF) to Neutral from Overweight with a price target of $57, down from $63, as part of a Q3 earnings. While the company has reduced its "problematic" 2022 vintages and introduced a new lending model that incorporates inflation, it could face incremental headwinds as balance sheets for low-income consumers deteriorate, the firm tells investors in a research note.
Top 5 Initiations:
Raymond James initiated coverage of Black Rock Coffee (BRCB) with an Outperform rating and $26 price target. Near-term comps and EBITDA results should remain strong driven by tangible, company specific initiatives, and new unit performance should continue to strengthen under its new real estate model, supporting confidence in the company's open-ended long-term unit growth opportunity, the firm tells investors in a research note. William Blair also started coverage of the stock with an Outperform rating.
Deutsche Bank initiated coverage of Via Transportation (VIA) with a Buy rating and $55 price target. The firm likes the company's position as the "most capable partner for digitally transforming municipal transit agencies." Needham, Wells Fargo, Oppenheimer, William Blair, Wolfe Research, Jefferies, Guggenheim, Citizens JMP, and Raymond James also started coverage of the name with Buy-equivalent ratings. Meanwhile, Morgan Stanley and Goldman Sachs initiated Via with Neutral-equivalent ratings.
UBS resumed coverage of DigitalOcean (DOCN) with a Neutral rating with a price target of $40, up from $32. The firm's checks suggest a steady core demand backdrop, and while they did lean positive on DigitalOcean's newer AI products, it seems too early for these to be needle movers.
Goldman Sachs initiated coverage of Legence (LGN) with a Buy rating and $37 price target, implying 20% upside. The firm says Legence is a leading contractor and engineering company specializing in mechanical, electrical, and plumbing systems. BMO Capital, Rothschild & Co Redburn, Stifel, BTIG, Wolfe Research, BofA, Cantor Fitzgerald, Guggenheim, and Bernstein started coverage of the name with Buy-equivalent ratings. Meanwhile, Jefferies and Barclays initiated Legence with Neutral-equivalent ratings.
Cantor Fitzgerald initiated coverage of Gemini (GEMI) with an Overweight rating and $37 price target. After resolving the fallout from its failed "Earn" program and restoring customer assets, Gemini is positioned for renewed growth driven by higher marketing spend, rising trading volumes, and expanding assets on its platform, creating strong revenue potential and an appealing risk/reward profile with shares still below their IPO price, the firm tells investors in a research note. Rosenblatt, Needham, Mizuho, Evercore ISI, and Truist also started coverage of the name with Buy-equivalent ratings, while Morgan Stanley, Keefe Bruyette, Citi, Goldman Sachs, and Barclays initiated Gemini with Neutral-equivalent ratings.