Top 5 Buy Recommendations:
1. Guggenheim Initiates Amazon with a Buy Rating
Guggenheim has begun coverage of Amazon.com (AMZN) with a Buy rating and a price target of $300. Despite the retail sector being viewed as "structurally sick," the firm notes that the holiday season has brought positive results, tariffs have been manageable, and most importantly, many companies in their coverage operate at or near their gross margin peaks.
2. JPMorgan Selects Roku as Top Sector Pick for 2026, Jefferies Upgrades
JPMorgan has increased the price target for Roku (ROKU) to $125 from $115 while maintaining an Overweight rating. As part of its 2026 outlook, JPMorgan adjusted ratings and targets within the small- and mid-cap internet and video games sector, naming Roku as its top pick for the coming year. The firm expects Roku's monetization efforts to become increasingly evident, leading to acceleration in Platform revenue growth in 2026.
Meanwhile, Jefferies has upgraded Roku to Buy from Hold, raising the price target to $135 from $100. The firm advises a selective approach within the internet sector for 2026, highlighting possible constraints on margin expansion and concerns about AI's impact on multiple appreciation. Jefferies anticipates more than 20% platform revenue growth in a favorable scenario for Roku, justifying the upgrade.
3. Truist Upgrades Five Below to Buy
Truist has upgraded Five Below (FIVE) from Hold to Buy, increasing the price target to $216 from $179. The firm noted that the company's Q3 report is a "game changer," indicating that Five Below's sales growth is more sustainable than previously believed. With the upcoming tax refund season and management's ability to leverage margins, the firm suggests the stock could achieve a higher valuation.
4. TD Cowen Upgrades Ulta Beauty to Buy
TD Cowen has raised Ulta Beauty (ULTA) to Buy from Hold with a new price target of $725, up from $600. The firm highlights the potential for the new CEO and management team to drive stronger merchandising, disciplined promotions, and global growth. Ulta is seen as having positive long-term growth prospects, underpinned by a 46 million member loyalty program in a resilient beauty market, with the stock's valuation offering upside potential.
5. General Motors Upgraded to Overweight by Morgan Stanley
Morgan Stanley has upgraded General Motors (GM) to Overweight from Equal Weight, with the price target raised to $90 from $54. As part of its 2026 outlook and a change in analyst coverage, the firm adjusted its ratings in the autos and shared mobility group. Morgan Stanley remains cautious on the electric vehicle sector, expecting a prolonged "winter" through 2026, but holds a moderately positive view on internal combustion engines and hybrids.
Top 5 Sell Recommendations:
1. Morgan Stanley Downgrades Rivian to Underweight
Morgan Stanley has downgraded Rivian (RIVN) to Underweight from Equal Weight with an unchanged price target of $12, following a change in analysts. As part of its 2026 outlook, the firm adjusted ratings in the autos and shared mobility group. The firm remains cautious into next year, expecting the electric vehicle "winter" to continue through 2026, offset by a moderately positive view on internal combustion engines and hybrids.
2. HSBC Downgrades Biogen to Reduce
HSBC has downgraded Biogen (BIIB) to Reduce from Hold, setting a price target of $143, down from $144. The firm cites the declining multiple sclerosis franchise, which is overshadowing growth elsewhere. Biogen faces margin pressure from lower royalties and the company’s 50% share re-rating seems overstretched, with limited near-term earnings potential and long-term earnings risk.
3. Goldman Sachs Initiates Carter’s with a Sell Rating
Goldman Sachs has initiated coverage of Carter’s (CRI) with a Sell rating and a $26 price target. In its coverage of the apparel retail sector, Goldman preferring store growth and pricing power, noting that apparel prices have lagged behind inflation, presenting an opportunity for retailers with value perception to catch-up. The firm favors newer concepts with larger growth opportunities in a resilient consumer environment.
4. BofA Double Downgrades Alcon to Underperform
BofA has downgraded Alcon (ALC) twice, moving it to Underperform from Buy, with a price target reduced to $75 from $100. The firm sees limited share upside and market uncertainties for Alcon, noting that 2025 featured a market slowdown, competition, and guidance cuts. BofA believes consensus estimates heading into 2026 are overly optimistic, assuming a sharp rebound and “ambitious” Unity ramp-up, leaving little room for positive surprises.
5. Compass Point Double Downgrades SLM to Sell
Compass Point has double downgraded SLM (SLM) to Sell from Buy, setting a price target of $23 down from $35. The downgrade follows an investor forum where SLM presented an updated medium-term outlook, reflecting growth from the Grad PLUS opportunity and the impact of its recently implemented loan-sale program. The firm viewed the outlook as a "major reset," indicating surprising EPS decline projections for 2026, contrary to previous expectations of steady improvement.