Coinbase Upgrades, Six Flags Downgrades

Top 5 Upgrades:

• Northland upgraded DraftKings (DNKG) from Underperform to Market Perform after the company reported third-quarter results below consensus, primarily due to favorable customer gaming results in September, a trend that continued into October.

• Monés Crespi upgraded Coinbase (COIN) from Neutral to Buy with a price target of $375, while keeping calendar year 2025 estimates unchanged and "slightly raising" calendar year 2026 estimates. The company likes this arrangement in the context of news flow related to stablecoin utility in the real world, and it “anticipates” that more news will emerge following the December 17th event and equity tokenization, and expects comments from the SEC in the near future.

• Leerink upgraded Eli Lilly (LLY) from Market Perform to Outperform and raised its price target from $886 to $1,104. The company expects a multifold increase in the number of people adopting obesity treatments by January 2027, driven by significant increases in Medicare and Medicaid access and Lilly’s launch of orforglipron, retatrutide, and aloralintide, which will strengthen the company’s leading position.

• Guggenheim upgraded Paylocity (PCTY) from Neutral to Buy with a price target of $180, indicating a 27% upside potential. In a research note, the company told investors that despite employment challenges and the increasing use of artificial intelligence in the workforce, Paylocity shares offer more benefits than risks.

• Monés Crespi upgraded Strategies (MSTR) from Sell to Neutral with no price target. The company remains at downside risk, but he says "downside pressure has significantly reduced" after the recent sell-off.

Top 5 Downgrades:

• Morgan Stanley downgraded Six Flags (FUN) from Overweight to Equalweight and reduced its price target from $30 to $20. The company is concerned about the company's EBITDA recovery in 2026 from the 2025 low due to cyclical and secular factors.

• Morgan Stanley downgraded CarMax (KMX) from Overweight to Equalweight and reduced its price target from $56 to $35. The company told investors that the previously announced decline in volume growth and execution, as well as uncertainty surrounding the new leadership, will keep the stock range-bound until investors gain confidence in the new CEO and transformation strategy.

• Morgan Stanley downgraded JD.com (JD) from Equalweight to Underweight and raised its price target to $28. The company sees JD as the worst Chinese e-commerce stock over the next 12 months.

• KeyBanc downgraded CubeSmart (CUBE) from Overweight to Sector Weight, with no price target. Although the company raised guidance for the third consecutive quarter and New York City "provided significant support," its fundamentals remain challenged, and the 2026 growth outlook appears less favorable, the company told investors in a research note.

• B. Riley downgraded Applied Optoelectronics (AAOI) from Neutral to Sell, and kept its target price unchanged at $15, implying a 43% downside. The company says a large portion of the company's potential opportunity in Amazon.com (AMZN) has already been factored into the stock.