Bank of America recent picks
Bank of America discussed a bunch of stocks recently that it likes for 2026, especially those leveraged to trends like the high-end consumer. The Wall Street investment bank likes positive trends emerging for names such as Visa, Penske, Ollie’s and Goldman Sachs . Penske Automotive Group Analyst Alexander Perry reinstated coverage of the auto retailer earlier this week. The firm says it likes the company’s exposure to one of the most important demographics, which is the higher-end consumer. The largest segment of Penske’s business is luxury vehicles, Perry added. “We consider this an advantage as it reduces the risk associated with price increases related to tariffs and enhances growth opportunities for parts and service given increases in vehicle complexity & technology,” he wrote. Perry also says Penske’s penchant for engaging in M & A leaves it well positioned for growth. “We think that PAG’s selective approach to acquisition targets and low net leverage position enable growth both domestically and abroad,” he went on to say. The stock is up 9% this year. Goldman Sachs The investment bank is firing on all cylinders heading into 2026, the firm says. Recent meetings with the CFO “in the Middle East highlighted the significant momentum on revenue growth and productivity,” analyst Ebrahim H. Poonawala wrote. The firm also raised its price target to $900 per share from $850 and says the stock has plenty more room to run. “We see the YTD move in the stock as anchored in fundamentals given a positive EPS revision cycle driven by rebounding M & A/IPO activity,” he said. Shares are up 55% this year. Read more. Ollie’s Analyst Lorraine Hutchinson is standing by the discount retailer following earnings earlier this week. The firm raised its price target to $150 per share from $145 and says Ollie’s continues to take advantage across retail with new locations and accelerating growth. “Most of the new stores are former Big Lots locations that were acquired on the open market rather than as bankruptcy leases,” she wrote. In addition, Ollie’s is well positioned to bring in consumers from all demographics, the firm says. “Customer growth was 12%, driven by strength in high-income and younger customers, who responded well to shifts from print ads to digital and social media marketing,” Hutchinson said. Meanwhile, shares are up 4% this year. “We view Ollie’s as well positioned within retail, as it offers less discretionary products at prices 20-70% lower than peers,” she went on to say. Visa “Following recent underperformance, we believe Visa shares offer very attractive return potential, and we are upgrading to Buy from Neutral. We view stablecoins as an opportunity, regulatory/litigation risks as manageable, and Visa as a premier business. Current valuation is close to a 10yr trough driven by overblown disruption concerns and a rotation into AI/risk-on stocks, in our view.” Nvidia “NVDA remains a full generation ahead of competition. … .Our $275 PO is based on 28x CY27E PE ex cash, within NVDA’s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.” Ollie’s “Most of the new stores are former Big Lots locations that were acquired on the open market rather than as bankruptcy leases. … .Customer growth was 12%, driven by strength in high-income and younger customers, who responded well to shifts from print ads to digital and social media marketing. … .We view Ollie’s as well positioned within retail, as it offers less discretionary products at prices 20-70% lower than peers.” Penske “We consider this an advantage as it reduces risk associated with price increases related to tariffs & enhances growth opportunities for parts & service given increases in vehicle complexity & technology. … .We think that PAG’s selective approach to acquisition targets and low net leverage position enable growth both domestically and abroad.” Goldman Sachs “Our recent investor meetings with CFO Denis Coleman and Head of IR Jehan Ilahi in the Middle East highlighted the significant momentum on revenue growth and productivity. … .We see the YTD move in the stock as anchored in fundamentals given a positive EPS revision cycle driven by rebounding M & A/IPO activity.”
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