Bank of America picks five stocks with more room to run after earnings
Bank of America named several stocks that are well positioned following earnings. The Wall Street investment bank says companies like Palantir are too attractive to ignore. Other buy-rated names screened by CNBC Pro include: Wayfair , Intapp , Diamondback and AerCap Holdings. Wayfair The online home furnishing company is firing on all cylinders, the firm wrote after the company’s quarterly report. Analyst Michael McGovern upgraded the stock to buy from neutral citing “accelerating share gains.” “With notably cyclical industry still in a 3-Yr. trough, we like the entry point for eventual housing market improvement,” he added. Bank of America also raised its price target to $130 per share from $86. “Over the long term, we see Wayfair as positioned to deliver strong share gains and earnings growth on a highly leverageable expense base and increasing gross margin,” he wrote. Shares are up a whopping 142% year to date. AerCap Holdings Buy shares of the airline leasing company in a hurry, according to analyst Ronald Epstein and team. “They have it all: aircraft, engines, cash,” he wrote. Epstein said Aercap shares have plenty more room to run and raised his price target on the stock to $150 per share from $130. “Supply constraints persist for both engines and aircraft, making AER’s high-quality portfolio and expertise in moving assets quickly and efficiently extremely valuable,” he wrote. The firm also praised AerCap’s capital deployment saying it has a differentiated offering compared to its peers. “The ‘Golden Age’ of aircraft leasing continues,” he said. Shares are up nearly 39% so far this year. Intapp Intapp is also firing on all cylinders following earnings, according to analyst Koji Ikeda. “This is also the second straight quarter of accelerating Cloud ARR [annual recurring revenue] growth, demonstrating Intapp’s finely tuned platform for its financial services and professional services customers is differentiated,” he wrote. The firm praised management’s execution and says the stock is highly underappreciated by investors. Ikeda also raised his price target on the stock to $76 per share from $75. Shares are down 40% this year but the firm says shareholders should still buy the dip. “We believe Intapp has the potential to disrupt and take share in its target professional/financial services verticals with its SaaS [software-as-a-service] apps,” he went on to say. Diamondback Energy “Reiterate top large cap oil pick. … Like many other E & P peers, FANG benefited from a tax advantage related to the Big Beautiful Bill. Strong free cash flow supported Diamondback’s largest quarterly buyback in company history, repurchasing 4.3mn shares for $603mn.” Intapp “This is also the second straight quarter of accelerating Cloud ARR growth, demonstrating Intapp’s finely tuned platform for its financial services and professional services customers is differentiated. … We believe Intapp has the potential to disrupt and take share in its target professional/financial services verticals with its SaaS apps.” AerCap Holdings “The ‘Golden Age’ of aircraft leasing continues. … They have it all: aircraft, engines, cash. … Supply constraints persist for both engines and aircraft, making AER’s high-quality portfolio and expertise in moving assets quickly and efficiently extremely valuable.” Palantir “We see Palantir as a beneficiary of rapidly growing demand for Artificial Intelligence (AI)-platforms in both commercial and government end-markets. Palantir’s dominant position in the AI-powered software market, differentiated end-to-end, ontology-powered & highly secure solutions and first mover advantages support strong profitable growth in the midterm.” Read more. Wayfair “Accelerating share gains with industry still in trough. … With notably cyclical industry still in a 3-Yr. trough, we like the entry point for eventual housing market improvement. … Over the long term, we see W as positioned to deliver strong share gains and earnings growth on a highly leverageable expense base and increasing gross margin.”
