Analysts at Bank of America said June is fast approaching and there are plenty of opportunities to buy top stocks. The company said there is still room for companies like Visa to run. Other stocks with strong buy ratings from Bank of America analysts include Zeta Global, Sprouts Farmers Market, United Rentals, and Citigroup. Sprouts Farmers Market The grocery store chain is firing on all cylinders, the company said. Analyst Robert Ormes recently left an investor meeting confident that the company is on the right track, with sales and profit margins remaining strong. He said, “We believe that SFM’s targeted approach to pricing and promotions, including initial price reductions on some SKUs (stock keeping units) such as coffee and other essentials, should provide greater value to the category and drive traffic from less engaged customer cohorts.” The company also raised its price target to $100 per share from $92. Ohms also said there is upside potential for the company’s expansion into organic items with its generous loyalty program. United Rentals analyst Michael Feniger is doubling his stock price after a series of investor meetings with the rental equipment company. “Management has reached the view that it can go into the construction season with confidence in terms of its growth profile, cost profile and M&A profile,” he said. Feniger said the company’s profit margins are attractive and its differentiated service offerings give it an advantage over its competitors. “The big picture, in our view, is that URI’s competitiveness has strengthened in the national balance of payments, even as other companies are looking to increase generation rents and land transfers,” he said. The stock is up about 16% this year. Feniger said the company was “built for the moment.” Zeta Global analyst Matt Block said digital advertising companies are “misunderstood and mispriced.” The company recently reinstated coverage on the stock with a price target of $24 per share. “Our positive outlook is driven by Zeta’s ability to consistently capture a share of digital marketing and advertising budgets,” the analysts wrote. Block said Zeta has a differentiated product and is well-positioned for multiple expansions. “Zeta sits between adtech and martech (marketing technology) and operates like a small walled garden, combining unique consumer data with direct execution of adtech,” he said. The stock price has increased more than 40% in the past 12 months. Citigroup’s Investor Day confirms our view that the stock should be revalued towards a 1.5x P/TBV (price to tangible book value) over the next two years as confidence grows in the company’s improving competitiveness, profitability and growth prospects. …Given the combination of relatively low investor expectations, below-TBV valuations, and strategic actions focused on stock price reversals over nearly two decades, we view risk/reward as skewed to the upside.” Shareholder returns are constrained. ” Sprouts Farmers Market “We believe SFM’s targeted approach to pricing and promotions, including initial price reductions on some SKUs such as coffee and other essentials, provides greater value in its category and should drive traffic from less engaged customer cohorts. … SFM provides breadth and depth across its attributes as the acquisition team focuses on the cutting edge of products and attracts vendors who want to test emerging health and wellness brands.” United Rentals Zeta Global “Misunderstandings and mispricing. …Our positive view is that the overall picture, in our view, is that URI’s competitive position in the national accounts has strengthened even as other companies look to increase generation rents and land transfers.” Zeta Global “Misunderstandings and mispricing. …Zeta operates like a miniature garden, sitting between adtech and martech (marketing technology), combining proprietary consumer data with direct adtech execution. ”Visa: “We are increasingly bullish following our investor meeting with CFO (Chris) Su Our estimates suggest that Visa is well-positioned to deliver double-digit revenue and EPS growth over the medium term, with attractive margins (over 50%) that should earn it a premium multiple.
