Bank of America’s Recent Stock Picks
Bank of America has highlighted several stocks that analysts believe have significant potential. Disney, for instance, is viewed as an appealing option that can’t be overlooked. Other recommended stocks include Oddity Tech, Bellring Brands, AT&T, and Primo brands.
Analyst Michael Funk resumed coverage on AT&T earlier this week, indicating that the company’s stocks are undervalued. He mentioned, “Considering the operational momentum and the combination of wireless and textile assets, I think AT&T should be valued more alongside TMU than with VZ.” Funk appreciates AT&T’s wireless and fiber assets, noting they position the company well in a competitive market. He added, “AT&T is essentially S8UND and has a stable subscription-based business model.” So far, AT&T shares have risen 19% this week.
Another analyst, Yasmine Deswandhy, remarked on Bellring Brands, which focuses on energy drinks and nutrition products. She stated that the current stock price doesn’t reflect the company’s historical sales growth and its future potential. Deswandhy noted the Health Foods category remains strong but acknowledged that increasing competition and changes in retailer purchasing strategies are natural and essential for growth in younger categories.
Despite a 23% decline in stocks this year, she emphasized the company was built for endurance. Meanwhile, Disney, under analyst Jessica Leaf Erich’s watch, is described as “cruising” ahead of its upcoming revenue report. She pointed out some short-term factors to watch, like fluctuations in profitability for direct-to-consumer segments and the re-evaluation of the park business.
There are recognized concerns regarding Disney’s experience units, especially with competition in theme parks and cruise ships. Nonetheless, Reif Ehrlich noted that Disney’s shares have risen nearly 8% this year, maintaining a generally healthy profile with its subscription model.
Looking to the future, there is optimism regarding consumer trends favoring bottled water, which is believed to support the company’s revenue goals. The expectation is for sales growth of over 20% annually, driven by new product introductions and the loyalty of existing customers. The anticipated launch of two new brands by 2025 or 2026 is expected to open up additional opportunities for new consumers.
