Amazon, Walmart, Target Stocks Top Picks by Bank of America
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.com (JD Get JD.com, 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.