Top 5 Buy Recommendations:
1. Bernstein Initiates Apple with Outperform
Bernstein initiated coverage on Apple (AAPL) with an Outperform rating and a $290 price target. The firm sees Apple as a leader in the “intelligence revolution” and anticipates significant long-term gains for IT hardware due to increased spending driven by the expansion of the artificial intelligence market.
2. Loop Capital Upgrades Netflix Citing “Exceptional” Engagement
Loop Capital upgraded Netflix (NFLX) to a Buy from Hold, with a price target increased to $1,350 from $1,150. The upgrade is based on "exceptional" user engagement in Q3 and a robust Q4 content lineup. Loop also revised its long-term margin expectations, stating that every dollar spent on content is now generating more revenue, boosting earnings and free cash flow.
3. Baird Upgrades Tesla to Outperform
Baird upgraded Tesla (TSLA) to Outperform from Neutral, raising the price target to $548 from $320. Despite predicting a decline in car volumes and near-term market fluctuations, Baird expects Tesla’s shares to outperform, recognizing the company as a leader in physical artificial intelligence. The firm sees future share price catalysts, including the next generation of the Optimus robot, entry into new robotaxi markets, and shareholder approval of Elon Musk's new incentive package.
4. RBC Capital Upgrades Nike to Outperform
RBC Capital upgraded Nike (NKE) to Outperform from Sector Perform, raising the price target to $90 from $76. The firm anticipates a stronger revenue recovery than market projections, supported by new products and World Cup sales. Nike is also expected to see improvements in running footwear and quarterly performance cycles with limited downside risk.
5. Benchmark Upgrades Intel on Nvidia Deal
Benchmark upgraded Intel (INTC) to Buy from Hold with a price target set at $43. The upgrade follows Nvidia's stake in Intel, which Benchmark views as a pivotal moment for Intel’s competitive position in the long term. The firm advises utilizing any price weakness after the recent 23% rally as an opportunity for long-term investment.
Top 5 Sell Recommendations:
1. Wolfe Research Initiates Target at Underperform
Wolfe Research initiated coverage on Target (TGT) with an Underperform rating and an $80 price target. The firm suggests Target need significant reinvestments in labor, capital expenditures, and advertising to sustainably enhance same-store sales momentum. Due to persistent share losses and weak execution, Wolfe does not recommend the stock despite its earnings potential.
2. Citi Downgrades Intel to Sell
Citi downgraded Intel (INTC) to Sell from Neutral, with a new price target of $29 up from $24. The company’s stock rallied 50% on expectations of an upcoming foundry deal, which Citi disagrees with. The firm believes Intel’s shares are overvalued based on the anticipated success of its foundry business, which it sees as unlikely.
3. UBS Downgrades Dropbox to Sell
UBS downgraded Dropbox (DBX) to Sell from Neutral, lowering the price target to $27 from $29. Following a change in analyst coverage, the firm cited “negative demand signals” for Dropbox’s new AI product, Dropbox Dash, and continued pressure on its core file, sync, and share business as reasons for the downgrade.
4. Argus Downgrades Beyond Meat to Sell
Argus downgraded Beyond Meat (BYND) to Sell from Hold. Increased competition, changes in consumer perception of the health attributes of Beyond Meat products, and termination fees from co-manufacturers have impacted the company’s growth. Rising input costs and lower volumes have pressured margins, necessitating cost-cutting measures including product discontinuations and layoffs.
5. Bernstein Downgrades Deckers Amid Slowing Growth
Bernstein analyst Aneesha Sherman initiated coverage of Deckers Outdoor (DECK) with an Underperform rating and a $100 price target. The firm highlighted slowing growth in both of the company’s brands, Hoka and Ugg, leading to pressures on margins. Despite a 42% year-to-date decline, the firm believes expectations remain too high.