Five stocks for shareholder returns, according to Bank of America
Bank of America recently named five stocks the firm says should be in every portfolio. The bank says investors should buy companies such as Live Nation , that are best positioned to deliver shareholder returns. Other buy-rated names screened by CNBC Pro include: Waystar, Barclays, Medline and Evercore. Evercore The capital markets “momentum” rolls on for the investment bank. Evercore recently reported a strong top and bottom line beat in its latest quarterly earnings report, and analyst Ebrahim Poonawala said the stock remains a top idea at Bank of America. “EVR’s exposure to large-cap M & A and growth in non-M & A advisory revenues should not only support EPS growth, but also provide some EPS defensibility, ” he wrote, referring to mergers and acquisitions and earnings per share. Poonawala also said Evercore is well positioned in the market for initial public offerings. “We view Evercore in a category of one among the boutique investment banks,” he went on to say. Shares are up 11% over the last 3 months. Live Nation The concert and entertainment company is firing on all cylinders, according to Bank of America. A team led by analyst Peter Henderson said in a recent note that Live Nation is best positioned for growth thanks to robust demand. “As a global leader in live entertainment, we view Live Nation as a multi-year growth story underpinned by solid company fundamentals and several live entertainment tailwinds,” the report said. The bank admitted that regulatory action is an overhang but said the stock remains too compelling to ignore. “Live Nation remains well positioned to capture sustained growth in live entertainment demand over the medium to long term, while still healthy consumer sentiment and spending trends support a solid near-term outlook,” the analysts went on to say. Shares are up 16% over the past month. Medline Shares of the surgical products company have plenty more room to run, the bank said. Analyst Andrew Obin recently initiated coverage of the company with a buy rating. “We think the company will deliver sustainable high-single digit organic growth on market share gains and strong med-surg demand,” he said. Obin also called Medline an “industry leader of [a] $175bn U.S. market.” Bank of America also likes the company’s history of making successful mergers and acquisitions, and sees more coming. The stock, which went public in mid-December, is up 13% in the past month. Bank of America was one of four lead underwriters in the IPO. Waystar “Waystar is well positioned for steady growth supported by stable end-market demand for revenue cycle management solutions. We believe Waystar has the opportunity to expand its existing relationships with 18 of the top 22 hospitals, with potential changes in the competitive environment to drive further growth.” Medline “Industry leader of $175bn U.S. market. … .We initiate coverage of Medline Inc. (MDLN) with a Buy rating and a $50 price objective, implying 23% potential upside. Medline is the US market leader in the manufacturing and distribution of medical-surgical products. We think the company will deliver sustainable high-single digit organic growth on market share gains and strong med-surg demand.” Live Nation “Live Nation remains well positioned to capture sustained growth in live entertainment demand over the medium to long term, while still healthy consumer sentiment and spending trends support a solid near-term outlook … As a global leader in live entertainment, we view Live Nation as a multi-year growth story underpinned by solid company fundamentals and several live entertainment tailwinds …” Evercore “We believe a broader sell-off in equities would likely be needed to derail the capital markets momentum … EVR’s exposure to large-cap M & A and growth in non-M & A advisory revenues should not only support EPS growth, but also provide some EPS defensibility … We view Evercore in a category of one among the boutique investment banks.” Barclays “Barclays’ valuation remains undemanding given its gearing to structural hedge roll on the [net interest income] side, and capital markets revenue on the non-NII side. Management is also committed to growing its UK business, which we think can lead to incremental upside.”
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