Bank of America named a number of stocks in the best position heading into its quarterly report. The company said companies like IBM have a lot of upside potential as earnings approach. Other stocks rated “buy” screened by CNBC Pro include Spotify, IHG, Grab, and Deutsche Bank. Spotify analyst Jessica Lief Ehrlich is bullish on the streaming company’s earnings report in early August. “We believe SPOT’s Q2 2026 results reflect stable underlying trends across key (key performance indicators), with reported accelerating revenue growth in the quarter primarily due to easing (foreign exchange) headwinds,” he said. Bank of America said it felt more confident after Spotify’s recent investor day, but now needs to monitor execution. “The announced AI layer, broader monetization potential, and multiple engagement levers highlight a long-term opportunity,” said Reif Ehrlich. Spotify stock is up 5% this month. The company says IBM stock is too attractive to ignore. Analyst Wamsi Mohan recently raised his price target from $315 to $330 per share ahead of the company’s earnings release later this month. The analyst said he expects the company’s acquisition of Confluent to strengthen software trends. “It (will) be on the upswing with accelerating Confluent synergies and strong growth in software and power and storage infrastructure,” he said. Meanwhile, the stock is up 3.3% this month. “(Again) a buy as IBM is pushing higher margin software into the mix (including M&A), strong FCF and options from quantum,” he said. Deutsche Bank analyst Tariq El Mejad said he is sticking with the German banking giant’s shares ahead of its earnings report later this month. “We expect the quarter to be moderate, with net income down 2% (year-over-year) despite a 4% increase in sales due to higher costs reflecting strategic investments, private bank restructuring charges and continued hiring,” he said in a recent note to clients. Still, El Mellado said there are encouraging signs, including an improvement in earnings from the company’s investment banking division. Additionally, deposit growth remains strong. The company also raised its price target to $39 per share from $38, and believes the stock is too attractive to ignore. “This is one of the most attractive reassessment opportunities in Europe,” he said. The stock is up 8% this year. IHG “We believe that IHG’s geographically diversified asset-light model is resilient and drives tangible returns and cash flow streams. Fee growth is driven by net system growth, a mix shift to higher fee premium segments, and margin expansion. The transformation should support continued growth in net systems. IHG has strong cash returns to shareholders with progressive dividends and the potential for regular share buybacks.” Grab “The company has strong cash returns to shareholders.” We believe that being a super app will help Grab interoperate across multiple use cases and amortize acquisition costs. ‘s super-app flywheel gives us a moat as an ecosystem and helps unlock synergies across business segments.”Deutsche Bank, however, expects management to focus investors on the improving outlook rather than the quarter itself. …We expect a weaker quarter, with net profit down 2% year-over-year, despite a 4% increase in sales due to higher costs reflecting strategic investments, private bank restructuring costs and continued hiring. Spotify “We believe SPOT’s Q2 2026 results reflect stable underlying trends across key KPIs. Revenue growth in the quarter was reported to have been accelerated primarily by easing currency headwinds. …The announced AI layer, broader monetization potential, and multiple engagement avenues highlight long-term opportunities.” IBM: “For F2Q, we expect revenue/EPS/PTI margins to be $18 billion/$3.03/50bps, and we expect IBM to deliver revenue and FCF slightly above the F26 guide. Our forecasts reflect this. However, upside is expected from accelerating Confluent synergies and strong growth in infrastructure software and power and storage. …REIT. Buy as IBM has high-margin software in the mix.” (including M&A), driving options from strong FCF and quantum. ”
