Amazon, Walmart, Target Stocks Top Picks by Bank of America

By Dan Weil

Amazon  (AMZN Get, Inc. Report, Walmart  (WMT Get Walmart Inc. Report and Target  (TGT Get Target Corporation Report rank among Bank of America’s top eight picks for global e-commerce stocks.

The other five are Farfetch  (FTCH Get Farfetch Limited Class A Report, Singapore’s Sea Ltd.  (SE Get Sea Ltd. (Singapore) Sponsored ADR Class A Report, China’s  (JD Get, Inc. (JD) Report, South Korea’s Coupang  (CPNG Get COUPANG, INC. CLASS Report and Argentina’s MercadoLibre  (MELI Get MercadoLibre, Inc. (MELI) Report.

The outlook for the e-commerce sector includes a slowing for the short term, as the economy reopens from the pandemic, say Bank of America analysts led by Justin Post. “But the long-term growth thesis [remains] intact.”

“While growth has slowed in 2021 and competitive concerns have grown as Amazon is accelerating investment in one-day shipping, our BofA card data suggest Amazon is gaining U.S. e-commerce share,” Post said.

“We see upside potential to over $4,500 based on comparison multiples.” His official price target is $4,250. Amazon on Wednesday traded at $3,272.86, up 0.8% at last check.

As for Walmart, it “is leveraging its dominant U.S. store footprint (with close to 5,000 locations) and broad multi-category assortment (with grocery and general merchandise) to support localized same-day fulfillment advantages,” said Bank of America analyst Robby Ohmes.

“WMT is offering pickup and delivery on more than 160,000 items as early as same-day.” Ohmes has a price target of $190. Walmart Wednesday traded at $138.96, down 0.3% at last check.

Ohmes said Target is “positioned to drive continued digital momentum, particularly through its same-day offerings--Drive Up, Pick Up and Shipt. It should be well positioned for the holidays as … it likely benefits from port access that many competitors do not have.”

His target price for Target is $317. Its stock Wednesday traded at $234.58, up 1.9% at last check. 

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