Friday 1st of April 2022 07:51:16 AM

Bank of America: Buy AMD, Lululemon and Target; short Autozone

Digitally enhanced shot of a graph showing the ups and downs shares on the stock market shapecharge/iStock via Getty Images Bank of America strategist Anthony Cassamassino released a list of ten investment ideas for Q2, including a recommendation to purchase Advanced Micro Devices (NASDAQ:AMD), Lululemon (NASDAQ:LULU) and Target (NYSE:TGT). He also highlighted an opportunity to short Autozone (NYSE:AZO). Among the other stocks spotlighted, Cassamassino also recommended long positions in Alaska Air (ALK), Camden Properties (CPT), D.R. Horton (DHI), Signature Bank (SBNY), Teledyne Tech (TDY) and Valero (VLO). For AMD, Bank of America stressed that the company is "still ripe" for market share gains against its main rival, Intel (INTC). The firm added that the company will benefit from a recently completed merger with Xilinx. LULU's prospects were improved by its recent earnings results, BofA argued, pointing to the company's accelerating growth rate. The firm said the latest financial figures "should eradicate the view that this was simply a pandemic beneficiary." On TGT, the firm underlined the success so far of the firm's strategy of using its stores as hubs. BofA noted that the business plan allows the retailer to compete with both brick-and-mortar competitors, as well as digital powerhouses, like Amazon. Turning to the pessimistic view of AZO, Bank of America said the auto parts retailer would be hurt by a slowdown in demand for DIY auto maintenance. In addition, high inflation will likely lead to a drop in spending by lower-income consumers, the firm said. For more of Bank of America's market takes, see why the company sees strong iPhone demand.

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