Stocks like Nvidia are table-pounding buys, Bank of America says
Bank of America analysts were pounding the table recently for a slew of buy-rated stocks. Nvidia , which unveils its second-quarter earnings on Wednesday, is one company that the firm is advising clients to buy any dip. The other stocks include: Ralph Lauren, Yeti, Goldman Sachs, and GE Aerospace. Yeti The outdoor goods and camping products company is firing on all cylinders, the firm said. Analyst Alexander Perry recently upgraded the stock to buy from neutral citing a slew of positive catalysts. “We see multiple drivers of potential 2H upside including NFL licensed drinkware and hard cooler rollout to YETI.com, strong AMZN prime day in 3Q, and strong new product contribution,” he wrote. The firm is bullish on Yeti’s expansion plans overseas adding that further M & A is possible in the company’s future. Yeti shares are down 20% making them especially “compelling,” Perry said. “We rate YETI shares Buy as we expect continued momentum supported by new product categories & international expansion,” he said. Ralph Lauren “A hit down the fairway,” analyst Christopher Nardone titled his recent recap of Ralph Lauren earnings. The company turned in a report earlier this month that offered a strong top and bottom line beat along a solid forecast. Nardone said sales in Europe and China didn’t disappoint, with the U.S. also looking promising despite some consumer uncertainty. “That said, we were encouraged by the strength in the full price store business in N.A. [North America],” he wrote. Revenue trends are holding up, too, the firm said. Meanwhile, Ralph Lauren shares are up 20% this year with plenty more room to run. “Despite a choppy macro backdrop, 1Q results reaffirmed our view that the brand remains healthy and margin execution remains intact,” he said. Goldman Sachs The investment bank remains a top pick for analyst Ebrahim Poonawala. Simply put, the firm said it sees a slew of positive catalysts for Goldman in the months ahead. These include tailwinds in Goldman’s asset and wealth management business, momentum in its investment bank unit and the ability to quickly adapt in an ever-changing regulatory environment. The firm said it still maintains confidence in Goldman leadership, too. “Mgmt. very focused on recalibrating expense base and increasing efficiency of the firm,” Poonawala wrote. Meanwhile, shares of the company are up more than 31%, but Bank of America still sees plenty of room for the stock to run. “We consider any significant stock market correction that puts into question EPS/ROE [return on equity] upside from the rebounding investment banking activity as a near-term risk, but view any such potential pullback as offering a particularly attractive buying opportunity,” he went on to say. GE Aerospace “We believe GE Aerospace is set to benefit from both the Commercial OE ramp, as well as Aftermarket in the current commercial aerospace cycle. Following the spin-off of GE Vernova, we see the company as leaner and focused on execution and safety.” Yeti “…we see multiple drivers of potential 2H upside including NFL licensed drinkware and hard cooler rollout to YETI.com, strong AMZN prime day in 3Q, and strong new product contribution. … We rate YETI shares Buy as we expect continued momentum supported by new product categories & international expansion. We see valuation compelling vs. other Leisure Peers” Ralph Lauren “A hit down the fairway. … That said, we were encouraged by the strength in the full price store business in N.A. … Despite a choppy macro backdrop, 1Q results reaffirmed our view that the brand remains healthy & margin execution remains intact. … We think shares are attractively valued given our confidence in strong revenue trends continuing given the brand’s global diversification & management’s ability to pull cost levers in this environment.” Nvidia “Nvidia’s share price rose 964% from Oct’22-July’24, still trades within its historical valuation range and may have more room to run, but too narrow of a focus on Nvidia, or even Semis more broadly, will miss the bigger picture.” Goldman Sachs “Investment banking (IB) momentum. … Asset management dual tailwinds. … We consider any significant stock market correction that puts into question EPS/ROE upside from the rebounding investment banking activity as a near-term risk, but view any such potential pullback as offering a particularly attractive buying opportunity. … Mgmt. very focused on recalibrating expense base and increasing efficiency of the firm.”
