Buy/Sell: Wall Street’s top 10 stock calls this week

What has Wall Street been buzzing about this week? Here are the top 5 Buy calls and the top 5 Sell calls made by Wall Street’s best analysts during the week of September 15-19.
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Top 5 Buy Calls:

1. Apple initiated with an Outperform at Bernstein

Bernstein initiated coverage of Apple (AAPL) with an Outperform rating and $290 price target. The firm believes Apple will be a winner in the “intelligence revolution.” Bernstein also noted that it sees significant long-term upside for IT hardware on the “sustainable” increase in spending as artificial intelligence expands the addressable market.

2. Loop upgrades Netflix to Buy on “exceptional” engagement

Loop Capital upgraded Netflix (NFLX) to Buy from Hold with a price target of $1,350, up from $1,150. The firm cites “exceptional” engagement on Netflix’s platform in Q3 and the company’s “strong” Q4 content slate for the upgrade. Loop upped its long-term margin assumptions for Netflix, saying each dollar of content is generating more revenue, which powers higher earnings and free cash flow.

3. Tesla upgraded to Outperform from Neutral at Baird

Baird upgraded Tesla (TSLA) to Outperform from Neutral with a price target of $548, up from $320. While the company’s car volumes will likely decline again in 2025 and near-term fundamentals “will be choppy,” the shares will outperform as Tesla is increasingly viewed as the leader in physical artificial intelligence, the firm tells investors in a research note. Baird points out that Elon Musk’s new pay package is intended to incentivize him for the coming decade. The firm’s minimum- and bull-scenario analysis translate to a 2035 share price of $1,400 and $3,000, respectively, after accounting for dilution from Musk’s additional shares. Baird sees several potential share catalysts ahead, including the next generation of Optimus reveal, additional bots, entering new markets for robotaxi service, and shareholder approval of Musk’s pay package.

4. Nike upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Nike (NKE) to Outperform from Sector Perform with a price target of $90, up from $76. The firm sees a “steeper revenue recovery” for Nike than Street estimates reflect with new product contribution and World Cup selling. The company is “taking the right steps” and is seeing improvements in the running footwear offer segment, RBC tells investors in a research note. The firm believes Nike is entering a quarterly beat and guidance raise cycle with limited share downside.

5. Benchmark upgrades Intel to Buy on “tipping point” Nvidia deal

Benchmark upgraded Intel (INTC) to Buy from Hold with a $43 price target. The firm believes the stake by Nvidia (NVDA) represents a “significant fundamental tipping point” in Intel’s long-term competitive positioning. The news is also a “strong vote of confidence” by the artificial intelligence industry’s leader in Intel’s development, the firm tells investors in a research note. Benchmark tells investors to use any weakness following the recent 23% rally as an opportunity to build long-term positions in Intel.

Top 5 Sell Calls:

1. Wolfe starts Target at Underperform, sees need for significant reinvestment

Wolfe Research initiated coverage of Target (TGT) with an Underperform rating and $80 price target. After persistent share losses and weak execution, Target will need to make a significant reinvestment in labor, capital expenditures, and advertising to sustainably improve same-store sales momentum, the firm tells investors in a research note. With the business comping down low-single digits and a rebase of earnings ahead, Wolfe said it cannot recommend the stock despite it having the most earnings torque in its coverage.

2. Intel downgraded to Sell from Neutral at Citi

Citi downgraded Intel (INTC) to Sell from Neutral with a price target of $29, up from $24. The stock has rallied 50% with the Nvidia (NVDA) deal having investors expect that a foundry deal is upcoming, the firm tells investors in a research note. Citi disagrees. It believes Intel shares now price in success in its foundry business, which has a minimal chance of succeeding. The firm cites valuation for the downgrade to Sell.

3. Dropbox assumed with Sell from Neutral at UBS

UBS downgraded Dropbox (DBX) to Sell from Neutral with a price target of $27, down from $29, after a transfer in analyst coverage of the name. The firm’s channel checks show “negative demand signals” for Dropbox Dash, the company’s new artificial intelligence product, as well as continued pressure on its core file, sync, and share business. Dropbox shares will de-rate from current levels as the company will not be able to return to and sustain positive revenue growth given deteriorating revenue growth fundamentals, UBS tells investors in a research note.

4. Beyond Meat cut to Sell at Argus amid rising costs and lower volumes

Argus downgraded Beyond Meat (BYND) to Sell from Hold. The company’s growth has been hit by increased competition, adverse changes in consumers’ perceptions about the health attributes of Beyond Meat products and by termination fees from co-manufacturers, the firm tells investors in a research note. Beyond Meat’s margins have also been pressured by lower volume and rising input costs, and while the management has taken steps to reduce costs, including discontinuing lower-performing products, and several rounds of layoffs, these actions so far have not been able to offset rising prices and declining volume, Argus added.

5. Bernstein starts Deckers with Underperform on slowing growth

Bernstein analyst Aneesha Sherman initiated coverage of Deckers Outdoor (DECK) with an Underperform rating and $100 price target. Both of the company’s brands, Hoka and Ugg, are slowing, driving down sales growth and putting pressure on margins, the firm tells investors in a research note. Bernstein believes that despite the stock being down 42% year-to-date, expectations remain too high. Hoka is “maxed out” in the U.S. running segment and is shifting to lower-quality growth while Ugg is coming out of a multi-year trend cycle and brand transformation, contends the firm.