Here are the biggest calls on Wall Street on Thursday:

Bank of America downgrades Lennar to underperform from neutral

The bank cut the homebuilder following its latest earnings.

“We are downgrading Lennar Corporation (LEN) to Underperform from Neutral following F4Q results and F1Q guidance that came in well below our expectations.”

Wells Fargo names Disney a top pick

The bank sees plenty of upside for Disney in 2026.

“We elevate DIS to our top pick (from SPOT). We do not believe in a Parks recession + see upside to EPS from per caps, DTC margins & box office.”

Roth initiates Valvoline at buy

Roth sees consistent growth for the oil change company.

“We initiate coverage of Valvoline Inc. (VVV) with a Buy rating.”

JPMorgan upgrades Edwards Life Sciences to overweight from neutral

JPMorgan says there is better visibility for the medtech company.

“With good visibility into outperformance in 2026 and a robust innovation pipeline that should support sustainable premium growth longer term, we are upgrading EW shares to Overweight from Neutral.”

JPMorgan upgrades Penumbra to overweight from neutral

JPMorgan says the medical supplies company has earnings upside.

“We’re upgrading Penumbra to OW, as a confluence of anniversaried headwinds and major catalysts/tailwinds have us bullish heading into 2026.”

Morgan Stanley upgrades Warner Music and Sphere to overweight from equal weight

Morgan Stanley says WMG will benefit from higher payments from streamers. The investment bank also upgrades Sphere, saying it’s benefiting from the Wizard of Oz experience.

“As a result, we upgrade 2025 laggard WMG to OW as higher payments from streamers are set to kick in during C1Q - the Grand Bargain returns. ... .Based on its 12/02 press release, it appears the strong demand for Wizard of Oz at Sphere has continued into year-end.”

Oppenheimer initiates Angel Studios as outperform

Oppenheimer says it’s bullish on the faith-based content producer.

“Angel’s focus on uplifting/family-oriented content cultivates a devoted audience.”

Bank of America upgrades Micron Technology to buy from neutral

The Wall Street bank upgrades Micron following earnings on Tuesday.

“We are changing our view about 1) durability of the memory cycle, and 2) quality of
MU’s balance sheet (30% FCF margin, net cash positive, can start to buyback stock
significantly in another year as Chips Act requirements get over).”

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Jefferies upgrades GE Vernova to buy from hold

Jefferies says GE Vernova has pricing power.

“We upgrade to Buy. More positive on the outlook for Power (gas pricing & services visibility) and electrification yet shares are down since the December 9th Analyst Day. $815 PT up from $736.”

BMO upgrades Merck to outperform from market perform

BMO says it likes Merck’s drug pipeline.

“Sometimes the best stories are yet to be written. We are upgrading MRK shares to Outperform and raising our target price to $130/share based on our belief that Merck is clearly and confidently assembling a portfolio to grow through the Keytruda [loss of exclusivity].”

Wedbush reiterates General Motors as outperform

Wedbush raises its price target on GM shares.

“We are raising our price target on General Motors from $75 to $95 and maintaining our OUTPERFORM rating as the company continues to navigate the macro storms heading into 2026 with a marquee focus on driving cash flow growth through its strong ICE business while executing better than its auto peers who have struggled in the EV transition”

Bank of America reiterates Meta Platforms as buy

Bank of America sees several positive catalysts in 2026 for Meta.

“Positives for 2026 could include: 1) Higher ad growth from capacity expansion, 2) New AI model launch improves AI sentiment, 3) New AI-content creation capabilities drive engagement upside, 4) Expense initiatives contain expense growth, and 5) 2027 valuation discount to market despite faster growth and strong positioning for AI.”

Barclays reiterates Nvidia as overweight

Barclays sees upside to AI spending for Nvidia in 2026.

“We are OW as the company has long-term sustainable growth led by a large lead in GPUs for AI in DC, with further Edge opportunities (autos, robots, etc.) and a competitive moat around a large portion of the market.”

Bank of America upgrades Rentokil to buy from neutral

The bank says the pest control and hygiene company has untapped potential.

“Rentokil is the leading player in the North American pest control market. It accounts for half of the global market estimated to be worth $26bn.”

Baird upgrades Rivian to outperform from neutral

Baird is bullish on the company’s launch of the R2 model in 2026.

“We are upgrading RIVN to Outperform as we move into 2026 which is the year of the R2 launch.”

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Goldman Sachs initiates Digital Realty Trust at buy

Goldman says the data center company is best positioned for growth.

“DLR (Buy) should see an extended period of revenue and profit growth supported by its extensive backlog, wide re-leasing spreads over the next several years, and development opportunities.”

MoffettNathanson reiterates Apple as neutral

The firm says it’s sticking with its neutral call on the iPhone maker heading into next year.

“As we enter 2026, one of those risks is already clear; a huge spike in memory costs threatens Apple’s margins – we estimate memory to be about 10% of Apple’s bill of materials and memory costs are up roughly 50% – or, if they pass through the increase in higher prices, then it threatens sales volumes.”

UBS reiterates Tesla as sell

UBS says it’s sticking with its sell on the EV maker heading into 2026.

“TSLA: Elon Musk has clearly pivoted the company away from EVs and towards AI ventures such as robo-taxi and humanoid robots.”

Citi upgrades Sherwin-Williams to buy from neutral

Citi says shares are undervalued heading into 2026.

“Upgrade SHW to Buy — With shares down ~3% YTD on an increasingly uncertain housing macro, we upgrade SHW on a favorable setup for shares into 2026: while rate cuts are not likely to be a panacea, we think it should help support a more robust 2027 housing macro environment.”

Citizens JMP upgrades Core Scientific to market outperform from market perform

Citizens says the stock is undervalued.

“We are upgrading the shares of Core Scientific to Market Outperform from Market Perform and are establishing a price target of $30 per share, which represents ~19x estimated 2027 EV/ EBITDA, reflecting the company’s robust growth prospects.”

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Morgan Stanley downgrades PayPal to underweight from equal weight

Morgan Stanley sees too many negative catalysts at PayPal.

“We think PayPal moved too slowly on improving Branded Checkout, and recent initiatives under new management are proving to be more complex and time-consuming than expected, and still aren’t moving the needle on usage as we hoped they would.”

Bank of America initiates SiteOne Landscape Supply at buy

Bank of America says the landscaping supplies company is best positioned for growth.

“We initiate coverage of SiteOne Landscape Supply, Inc. (ticker: SITE) with a Buy rating.”

Wells Fargo initiates United and Delta at overweight

The bank says it’s bullish on both airlines but that it prefers United.

“We are generally constructive on the airline space and we see a path to solid performance for each of the four carriers in our coverage, particularly as low-end capacity is rationalized. That said, we think United and Delta are best positioned for upside given favorable premium positions, margin opportunity, and leverage, which collectively support re-rating. United is our top pick in the space as we believe it can narrow the performance gap with Delta.”

Goldman Sachs upgrades Cytokinetics to buy from neutral

Goldman says the biotech company is part of the “cardiology renaissance.”

“We see CYTK as re-emerging in 2026 as one of the drivers of the cardiology renaissance..”