Check out the companies making headlines in premarket trading.

CarMax — Shares of the used car seller slid 4.8% after JPMorgan downgraded them to underweight, saying investors aren’t fully pricing in the risks surrounding the company and hope for a recovery looks “premature.” CarMax fell 53% in 2022 but has risen 18% since its disappointing quarterly results in December.

Salesforce — The software giant fell about 3% after Bernstein downgraded the shares to underperform from market perform, saying they’re falling into a “growth purgatory” and could have difficulty climbing out of it. That comes a week after the company announced its plan to reduce staff. Shares could fall another 20%, according to Bernstein.

Coinbase — Shares of the crypto services provider fell about 3% following a downgrade from Bank of America, which said consensus estimates on Coinbase are “way too high” given the current crypto outlook. That came a day after the company announced a second round of layoffs comprising about 950 jobs, of a fifth of the company. Coinbase shares dropped 86% in 2022 as macro conditions and scandal dragged down the crypto market.

Tesla — Tesla shares rose 2% after the EV maker registered with the state of Texas to expand its electric vehicle factory in Austin this year. Separately, Goldman Sachs also named the stock a top pick for 2023.

Levi Strauss & Co — Shares of the clothing company slipped 2.2% after Citi downgraded the stock to neutral from buy. The firm cited weaker denim trends that could pressure the company in the near to medium term.

Warner Bros Discovery — Guggenheim upgraded the media company to buy from neutral Wednesday, citing an attractive risk/reward and narrative for the first half of the year. Warner Bros. Discovery rose 1.75% in the premarket, following an 8% gain Tuesday.

Toll Brothers — Shares of the homebuilder rose nearly 2% after Bank of America upgraded Toll Brothers to buy from neutral, noting: “TOL will face incremental headwinds from incentives and mix shift through the year, but this will be offset by tailwinds lower input costs, especially lumber.”

Wells Fargo — Wells Fargo is shrinking its footprint in the mortgage market as the bank manages regulatory pressure and the impact of higher rates on housing. The company was once the biggest mortgage lender in the country. It will now limit home loans to existing customers and borrowers from minority communities. Shares were higher by less than 1% premarket.

Southwest Airlines — Susquehanna downgraded the airline to neutral from positive, citing the operational meltdown during the recent winter storm. Southwest lost 1.55% in the premarket.

Walt Disney — Disney revised its pricing policies at its domestic theme parks, making a number of modifications to its reservation and ticketing system, as well as its annual pass membership perks, to make it easier for loyal customers to attend. Shares were higher by less than 1% premarket.

 — CNBC’s Samantha Subin, Michelle Fox, Jesse Pound and Alex Harring contributed reporting