Bank of America’s analyst, Arthur Pereira, is bullish on Eletrobras, a Brazilian electric utilities company. Despite U.S.-traded shares being down 16% in 2024, Pereira sees a “potential inflection point in (pessimistic) sentiment.” He believes that there is room for growth as he anticipates fundamentals picking up, leading to a re-rating of the stock. Positive catalysts include higher power prices, upward revisions to transmission revenues, and accretive asset sales. Eletrobras is set to report earnings in early August.
Vivek Arya, an analyst at Bank of America, is optimistic about Broadcom’s future. The chipmaker’s shares are up 52% this year, and Arya believes there is still room for growth. He raised his price target on the stock to $2,150 per share, citing a transformation to a growth stock driven by artificial intelligence and synergies from its VMware acquisition. Despite facing stiff competition from Nvidia, Arya stands by Broadcom’s “best-in-class management team.” The company is scheduled to report earnings later this quarter.
CompoSecure: Poised for Stellar Growth
Analyst Cassie Chan is bullish on CompoSecure, the maker of metal credit cards. With shares up nearly 40% this year, Chan sees further upside potential. She notes that CompoSecure commands approximately 83% market share and is poised to dominate the space as metal card issuance increases. The company’s innovative approach to developing gold and glass cards for wealthier cardholders has positioned it for success. Chan believes that CompoSecure’s competitive status and large addressable market will enable it to achieve double-digit revenue growth and strong margins. The company is set to report earnings in early August.
Bank of America sees New Oriental Education & Technology Group as a top pick in the China consumer cluster. Despite expected margin contraction in the recent quarter, the focus on topline growth and expansion pace remains strong. With a solid growth outlook, New Oriental Education & Technology Group is positioned to capitalize on the booming education industry. It is praised for being the largest player in the education space and delivering robust growth.
Bank of America has highlighted several stocks with strong growth potential ahead of their earnings reports. From Eletrobras and Broadcom to CompoSecure and New Oriental Education & Technology Group, these companies have been identified as attractive investment opportunities. Investors should keep an eye on these stocks as they navigate through the current market conditions.