Investing

3 Fresh Ideas From BofA Securities With Solid Upside Potential

Markets have been turning lower recently, after a powerhouse month of July. With this rally seemingly cooling off, investors are looking at where they can keep and even grow their gains. Recent economic data has been mixed, and no clear direction for markets has been established. So, the current situation is tricky for investors. However, one major Wall Street firm recently named a few stocks in which it sees gains going forward.

BofA Securities issued calls across industries where it sees significant potential upside. Considering the inflationary climate, finding upside is key to keeping pace with the recovery from the market lows this summer.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Global-e Online

BofA reiterated a Buy rating on Global-e Online Ltd. (NASDAQ: GLBE) and raised its $30 price target to $40, which implies upside of 17% from the most recent closing price of $34.00. Lead analyst Koji Ikeda made the call after the company reported “good” second-quarter results and raised full-year revenue and EBITDA guidance.

Full-year revenue guide excluding Borderfree was raised by approximately the second quarter beat, which bears could focus on, but Ikeda believes the continued conservative approach to guidance is “appreciated given the macro environment” and continues to view Global-e as “best positioned in the large global cross-border eCommerce opportunity.”

The stock traded at around $37 on Thursday, in a 52-week range of $15.63 to $83.77. Shares are down roughly 42% year to date.

Smucker

The upgrade on J.M. Smucker Co. (NYSE: SJM) was to Buy from Neutral. The price target rose to $155 from $145, and the implied upside from the most recent closing price of $137.53 is 13%. Peter Galbo was the lead analyst on the call.

The company is scheduled to report fiscal first-quarter earnings next Tuesday, and Gabo sees upside to sales and earnings in the quarter and to EPS for fiscal 2023 as the company moves past the Jif peanut butter recall. Ultimately, he thinks the valuation gap should close as the company executes on its fiscal 2023 outlook.

The stock traded at around $139 on Thursday, in a 52-week range of $118.55 to $146.74. Shares are actually up over 2% year to date. The stock has a dividend yield of 3.0%.

Walmart

On Walmart Inc. (NYSE: WMT), BofA reiterated a Buy rating and raised the $145 price target to $155. That implies upside of 11% from the most recent closing price of $139.37. Robert Ohmes raised the price target as he increased his fiscal 2023 adjusted EPS estimate following the company’s “strong” second-quarter results.

U.S. unit and Sam’s comparable store sales upside should continue in the second half, as many shoppers across the company’s broad customer base likely continue to favor its value-priced offerings in a highly inflationary environment, and food inflation should continue to benefit comparably.

The stock traded at around $139 on Thursday, in a 52-week range of $117.27 to $160.77. Shares are down over 3% year to date. It has a 1.7% dividend yield.

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