Merrill Lynch Identifies Top Thematic Stock Picks for the Rise of Millennials

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Netflix

Netflix Inc. (NASDAQ: NFLX) was selected in the thematic media trends, even if this may be a favorite for those who are not millennials. Netflix has nosebleed valuations, and Merrill Lynch has a Buy rating and a whopping $164.00 price objective.

Netflix was last seen trading at $97.93, within a 52-week range of $58.46 to $133.27. The consensus analyst target is $124.95.

Urban Outfitter

Urban Outfitters Inc. (NASDAQ: URBN) was selected by Merrill Lynch as a top thematic play for millennials due to its unique private and third-party apparel selections. Maybe even millennials need to actually go try on $200 jeans before they buy them. Urban Outfitters is worth about $3.2 billion, but what is interesting here is that this is also a value investing stock now.

The firm has a Buy rating and a $30 price objective on Urban Outfitters. Its shares traded at $27.43. The consensus price target is $26.93, and the 52-week range is $19.26 to $47.25.

GrubHub

GrubHub Inc. (NYSE: GRUB) was selected for its role as the number one online takeout provider. GrubHub is rated as Buy and comes with a $35 price objective at Merrill Lynch.

The shares were recently trading at $23.71, with a consensus analyst target of $29.68 and a 52-week range of $17.77 to $47.95.

Kate Spade

Kate Spade & Co. (NYSE: KATE) was selected for being affordable luxury for the haves and almost haves in the millennials generation. This one is worth roughly $3 billion in market cap. It is also rated at Buy and comes with a $31 price objective.

Shares of Kate Spade were last seen at $23.07, with a consensus target price of $27.47 and a 52-week range of $15.10 to $35.23.

Take-Two Interactive Software

Take-Two Interactive Software Inc. (NASDAQ: TTWO) was selected as a top provider in interactive gaming software, particularly with a focus on the Grand Theft Auto series that performs well with each new release. Merrill Lynch has a Buy rating and a $43 price objective.

Take-Two shares recently traded at $36.57, with a consensus analyst target of $40.75 and a 52-week range of $23.30 to $37.71.