Top 5 Buy Recommendations:

1. Microsoft initiated with an Outperform rating by Baird

Baird has initiated coverage of Microsoft (MSFT), assigning an Outperform rating and a $600 price target. The firm highlights Microsoft's leadership in the AI revolution through its infrastructure and applications, bolstered by its partnership with OpenAI, which provides a comprehensive AI platform for businesses and individual consumers. According to Baird's research note, Microsoft's revenue growth is poised to sustain double-digit growth at significant scale. Despite strong stock performance, the shares have recently declined from their highs due to concerns surrounding AI-related capital expenditure and cycles.

2. Meta Platforms upgraded to Buy at Freedom Capital

Freedom Capital has upgraded Meta Platforms (META) to Buy from Hold while maintaining its price target at $800. The firm emphasizes that current share levels do not adequately reflect Meta's AI initiatives. Meta's Q3 sales outperformed expectations, driven by soaring advertising revenue, improved recommendation algorithms, and heightened user engagement, the firm outlined in a research note.

3. DoorDash, Inc. upgraded to Outperform by Wedbush

Wedbush has upgraded DoorDash (DASH) to Outperform from Neutral, setting a $260 price target. The firm recognizes DoorDash's dominant position in the U.S. food and delivery market and commends its effective execution across strategic initiatives aimed at fostering sustainable long-term growth.

4. Nike upgraded to Overweight by Wells Fargo

Wells Fargo has elevated Nike (NKE) to Overweight from Equal Weight and raised its price target from $60 to $75. The firm notes a significant improvement in sales and margin visibility for Nike. Although the company has endured a negative estimate revision cycle for three years, Wells Fargo anticipates this trend to reverse within 6-9 months. The firm points to notable advancements in innovation and diminishing headwinds, projecting Nike to exit fiscal 2026 with 3%-4% revenue growth and gross margin expansion of approximately 200 basis points.

5. Instacart, Inc. (Maplebear Inc.) upgraded to Outperform at BMO Capital

BMO Capital has upgraded Instacart (CART) to Outperform from Market Perform, keeping the price target steady at $58. The firm calls Instacart's Q3 results “solid” and highlights its attractive valuation. BMO sees the company’s forward guidance, which is slightly above consensus estimates, as cautiously optimistic. With Instacart trading at a discount relative to historical valuation levels, BMO views the risk/reward profile as appealing. The firm considers the grocery marketplace healthy and expanding.

Top 5 Sell Recommendations:

1. Dollar Tree downgraded to Sell by Goldman Sachs

Goldman Sachs has double downgraded Dollar Tree (DLTR) to Sell from Buy, reducing the price target from $133 to $103. The firm asserts that the stock already reflects the company’s improved fundamentals and anticipates limited upside from current levels. Concerns over declining consumer perception of pricing and value, alongside challenges with the lower-income demographic and competitor discounters, influenced Goldman’s decision.

2. Fastenal downgraded to Underperform by Wolfe Research

Wolfe Research has downgraded Fastenal (FAST) to Underperform from Peer Perform, assigning a $43 price target. Wolfe cites decelerating sales growth and mounting inflationary pressures as contributing factors to weakening gross margins. The firm notes that while Fastenal’s valuation multiples have been trending downward, there remains a risk for further contraction due to its relatively high pricing.

3. CarMax initiated with an Underweight rating by Barclays

Barclays has begun coverage of CarMax (KMX) with an Underweight rating and a $28 price target. The firm observes mixed fundamentals in the auto retail sector, where digital auction marketplaces are gaining traction over traditional physical auctions. Barclays cites uncertainty surrounding CarMax's strategic direction as the basis for the negative rating.

4. Applied Optoelectronics downgraded to Sell by B. Riley

B. Riley has downgraded Applied Optoelectronics (AAOI) to Sell from Neutral, maintaining its price target at $15. The firm contends that investors have already accounted for much of the potential upside from Applied Optoelectronics’ opportunity with Amazon (AMZN). Riley expresses skepticism over 2026 revenue estimates, labeling them as overly ambitious given the company’s challenges despite the Amazon partnership. Valuation concerns are cited as the primary reason for the downgrade.

5. JD.com downgraded to Underweight by Morgan Stanley

Morgan Stanley has reduced JD.com (JD) to Underweight from Equal Weight, with a $28 price target. The firm underscores that JD is currently the most poorly positioned Chinese e-commerce stock and anticipates significant slowdown in revenue growth. Erosion of margins due to diminished trade-in benefits and investments in new ventures are highlighted as primary concerns weakening its shareholder returns outlook.