Bank of America recently named several companies that have plenty of upside, according to analysts there. Stocks such as Disney are too attractive to ignore, the firm wrote. Other buy-rated names include: Oddity Tech , Bellring Brands, AT & T and Primo Brands. AT & T Analyst Michael Funk reinstated coverage of the mobile phone provider earlier this week. Bank of America believes the stock is severely undervalued. “Given the operational momentum in the business, strong combination of wireless and fiber assets and targeted return of capital over the next several years, we believe T should trade more closely to TMUS than VZ,” he wrote, he wrote referring to T-Mobile and Verizon by their ticker symbols. Funk says he likes AT & T’s wireless and fiber assets and says it’s well positioned to compete in a competitive environment. “AT & T is fundamentally s8und, with a stable subscription-based business model,” he added. Meanwhile, shares of the company are up 19% this yea, through Friday. “Best balance of growth and returns,” Funk said of AT & T. Bellring Brands The energy drink and nutrition products company is firing on all cylinders, according to analyst Yasmine Deswandhy. “We believe the current share price undervalues BRBR’s historical sales growth delivery and potential runway,” she said. The health foods category remains strong, she wrote, especially as consumer choose new and different ways to diet. “In our view, increased competition and recent changes in retailer buying teams are only natural in a young category and necessary for the category to expand out of the fringes and into the mainstream,” she said. Moreover, the stock is compelling, with shares down 23% this year. “Built for endurance,” the analyst wrote. Disney The entertainment and theme park operator is “cruising along,” analyst Jessica Reif Ehrlich wrote ahead of Disney’s earnings report in early August. “Near term catalysts include: profitability inflection in [direct to consumer businesses], reacceleration in the Parks business and [a] strong upcoming film slate which drives other businesses,” she wrote. Bank of America admitted there had been some concerns about Disney’s Experiences unit which includes cruise ships, and theme park competition, but for now Reif Ehrlich says worries are overdone. “It appears now Experiences is tracking at least in line with FY25 expectations with the benefit of a robust pipeline of new cruise ships which should buoy results in the years to come,” she said. In addition, Reif Ehrlich says sports advertising continues to be a positive for Disney, which owns ESPN. Disney shares are up almost 8% this year. AT & T “Given the operational momentum in the business, strong combination of wireless and fiber assets and targeted return of capital over the next several years, we believe T should trade more closely to TMUS than VZ … Fiber is a key element of AT & T’s long-term strategy … AT & T is fundamentally sound, with a stable subscription-based business model.” BellRing Brands “Built for endurance. … .We believe the current share price undervalues BRBR’s historical sales growth delivery and potential runway. … .In our view, increased competition and recent changes in retailer buying teams are only natural in a young category and necessary for the category to expand out of the fringes and into the mainstream.” Disney “Crusing Along. … .It appears now Experiences is tracking at least in line with FY25 expectations with the benefit of a robust pipeline of new cruise ships which should buoy results in the years to come … Near term catalysts include: 1) profitability inflection in DTC, 2) reacceleration in the Parks business and 3) strong upcoming film slate which drives other businesses.” Primo Brands “We rate PRMB shares Buy. In our view, favorable long-term consumer trends toward bottled water help support the business’ top-line targets, with near-term synergy delivery helping build sustainable EBITDA growth.” Oddity Tech “We see opportunity for ODD to use its enhanced technological capabilities to capture share from legacy players. We model 20%+ sales growth annually but see potential upside to that, driven by new product launches and continued high repeat rates on a growing customer cohort. Two new brand launches in 2025/2026 should drive further opportunities targeting new end users.”
