Bank of America/Merrill Lynch has issued three changes to its Core Portfolio for investors. The move affects shares of Under Armour Inc. (NYSE: UA), Home Depot Inc. (NYSE: HD) and Ford Motor Co. (NYSE: F). Not all these changes are Buy recommendations, although the outlook on each company remains positive in the individual stock commentary.
The first move from Merrill Lynch was to remove its 2% Core Portfolio position in Under Armour Inc. (NYSE: UA). The firm said:
While we still believe that Under Armour is poised to be a leading global athletic brand over the long term, the stock has appreciated over 30% YTD and now trades at more than 32-times 2014 earnings estimates.
Merrill Lynch has decided to dial back a bit on its equity position in Home Depot Inc. (NYSE: HD). The holding moves from 4% to 3% in the Core Portfolio, and the firm said the move is to raise funds to establish a new position in this sector.
With the funds raised from these two positions, the analyst team is establishing a 3% position in Ford Motor Co. (NYSE: F). Ford continues to progress in its turnaround and in paying down debt. One interesting note on Ford is that Bank of America’s analyst John Murphy has just reiterated his Buy rating this week and raised his price target to a street-high of $24 from $20.
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