Investing

BofA Securities Has Buy Ratings on 4 Reddit/WallStreetBets Stocks

Academy Sports & Outdoors

Shares of this retailer already have had a solid move higher, and the company recently completed a successful secondary offer that was well received. Academy Sports & Outdoors, Inc. (NYSE: ASO) is a value-oriented sporting goods and outdoor recreation retailer with a concentration in the southern United States. It has 259 stores across 16 states, with 41% of the stores in Texas. The company offers a broad-based assortment across national and 17 private label brands in outdoor (32% of 2019 sales), apparel (29%), footwear (21%) and sports and recreation (18%).

The company recently posted solid results and BofA Securities noted this:

We are raising our price target and earnings-per-share estimates to reflect significant first quarter same-store sales upside versus our expectations. We believe solitary leisure momentum continues with consumer spending accelerating despite increase in entertainment spend. We see long-term tailwinds from significant new customer acquisition during 2020 and the Nike wholesale consolidation strategy.

Like many of the Reddit stocks, Academy Sports & Outdoors has a large 25% of the float sold short. The BofA Securities price target for the shares is $42, while the Wall Street consensus target is just $37.83. The final trade for Thursday was reported at $34.81 a share, which was up almost 3% on the day.

Enphase Energy

While somewhat off the radar, this is very solid green energy play. Enphase Energy Inc. (NASDAQ: ENPH) designs, develops, manufactures and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.

The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems, Envoy communications gateway and Enlighten cloud-based monitoring service, as well as other accessories.

Enphase Energy sells its solutions to solar distributors and directly to large installers, original equipment manufacturers, strategic partners and homeowners, as well as directly to the do-it-yourself market through its legacy product upgrade program or online store.

The company only has 4% of the float sold short. BofA Securities continues to love the secular growth story on battery storage and the European exposure, and it has set a huge $214 price target. The consensus target is down at $195.12, and Enphase Energy stock closed at $114.61 on Thursday.