Bank of America has highlighted Carnival as one of the stocks poised for upside in the coming months. Analyst Andrew Didora is optimistic about the company’s performance based on its recent earnings. The cruise industry is showing signs of recovery, and Carnival’s management is executing well despite challenges from the Covid-19 pandemic. Didora also points out that cost savings initiatives and a strong balance sheet could lead to better valuation multiples for the stock. Despite a 7% decline in 2024, Didora raised his price target for Carnival, implying a 40% upside potential from the current levels.
Another stock recommended by Bank of America is Block, a payment company that has seen a 15% decline in 2024. Analyst Jason Kupferberg believes that the recent dip in the stock price presents a buying opportunity. Despite concerns around US GPV growth and SMB, Kupferberg emphasizes that Block’s fundamentals remain strong and the valuation is attractive. The stock has underperformed due to changes in management and weaker-than-expected quarterly reports from other software companies. However, Kupferberg remains bullish on Block shares, citing increased sell-side estimates and favorable market conditions.
Palantir Technologies is another top pick by Bank of America, with shares surging 60% this year. Analyst Mariana Perez Mora sees the stock as a solid buy ahead of earnings in August. Despite the impressive rally, Mora believes that the market is underpricing the risks around the next earnings announcement, providing an attractive entry point for investors. The stock’s technical indicators remain strong, and Mora highlights positive catalysts such as potential inclusion in the S & P 500 and growing business through the US Department of Defense. She expects significant upside for Palantir from the continued adoption of AI technologies.
While Bank of America did not provide detailed analysis on Square in their report, the company remains a key player in the digital payments space. Square’s shares have been lagging in recent months, but the company has been benefiting from increasing sell-side estimates. The overall attractive valuation and growth potential make Square an interesting stock to watch in the coming months.
Nvidia is one of the well-positioned companies heading into the second half of the year, according to Bank of America. The firm points out the solid fundamentals and compelling valuation of Nvidia, cushioning against market volatility. Despite potential short-term fluctuations, Nvidia’s GenAI hardware deployments and next-gen purpose-built Blackwell AI accelerator systems are expected to drive long-term growth. With a significant opportunity in the AI space and strong demand from cloud customers, Nvidia looks set for further upside.
Overall, Bank of America’s research highlights a mix of stocks with different growth potentials and risk profiles. Investors looking for exposure to various sectors such as technology, payments, and travel could consider these stocks based on their own risk tolerance and investment objectives. It is important to conduct thorough research and due diligence before making investment decisions based on analyst recommendations.