Five Stocks That Are Set to Rally According to Bank of America

Bank of America has identified a selection of stocks it believes are poised for continued growth, especially as the summer approaches. The firm maintains a “buy” rating on several notable companies, emphasizing their long-term potential and the various catalysts that could push their stock prices higher.

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Among those highlighted are tech giant Nvidia, streaming leader Netflix, e-commerce powerhouse Amazon, Western-themed retailer Boot Barn, and tobacco company Philip Morris.

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Netflix
Netflix has emerged as a strong performer this year, and Bank of America sees more upside ahead. Analyst Jessica Reif Ehrlich recently raised her price target on the stock to $1,490 from $1,175, underlining her optimistic outlook. She pointed to the company’s sustained earnings growth, increasing subscriber numbers, and its resilience amid tariff-related shifts in market behavior as key reasons for its recent momentum.

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Reif Ehrlich also believes Netflix’s advancements in advertising technology will boost profitability. In her view, the company’s unrivaled scale in the streaming space positions it for further subscriber gains and expansion into new areas like live sports and advertising. She emphasized that earnings and free cash flow are expected to continue climbing. Netflix’s stock has already gained 39% this year, driven by its strong performance in key business areas.

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Amazon
Bank of America analyst Justin Post also sees bright prospects for Amazon. He raised his price target from $230 to $248, citing the growing role of robotics in Amazon’s operations. The company’s investments in automation, including drones and robotic systems, are expected to reduce labor costs, boost order accuracy, and make warehouse operations more efficient.

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Post said these advancements will help Amazon deepen its competitive advantages and lead to meaningful cost savings. He noted that Amazon is well-positioned to benefit from ongoing global trends such as the rise of e-commerce, cloud computing, online advertising, and connected devices. Over the past year, Amazon shares have climbed more than 15%, with further gains potentially on the horizon as these innovations take hold.

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Boot Barn
Boot Barn, a retail chain specializing in Western apparel and footwear, is another name on Bank of America’s radar. Analyst Christopher Nardone lifted his price target to $192 from $173 after observing broad-based improvement across multiple product categories and regions. This widespread strength, he noted, shows that the company’s success isn’t concentrated in one area, suggesting its gains are sustainable.

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According to Nardone, Boot Barn’s scale allows it to offer better pricing, more exclusive products, and improved customer service—all of which enhance its competitive position. He sees the retailer as a long-term growth story with significant potential, especially in the current favorable pricing environment. The stock has risen 8% in 2024, and Bank of America believes more gains are likely as the company builds on its momentum.

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Nvidia
Nvidia remains a top pick for Bank of America, which sees the chipmaker as one of the best-positioned companies to capitalize on the surging demand for artificial intelligence. The firm maintained its “buy” rating and reaffirmed its price objective of $180 per share. It praised Nvidia’s strong performance lead in AI-related technologies, its wide-ranging pipeline, and deep support from developers.

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Bank of America believes Nvidia benefits from several advantages: its entrenched position in the market, the scalability of its AI solutions, and its role as a key enabler of the broader AI ecosystem. These factors support the view that Nvidia can maintain its momentum and grow further, even after its impressive gains in recent years.

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Philip Morris
Philip Morris has also caught the attention of Bank of America for its solid performance in 2024. The company’s strategic focus on smoke-free products like ZYN and IQOS is beginning to pay off, according to the firm. Analyst commentary highlighted Philip Morris’ increasing profitability in this segment and the continued contribution from its traditional combustible tobacco products, which provide financial support for its smoke-free transition.

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Another advantage, the firm noted, is Philip Morris’ limited exposure to China and the protection that offers from tariff-related volatility. Given the company’s solid execution and ability to navigate economic uncertainty, Bank of America raised its price target from $182 to $200. Philip Morris stands out not only for its defensive qualities but also for its ability to grow and innovate within the tobacco and nicotine market.

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Final Thoughts
Overall, Bank of America sees opportunity in a diverse set of companies, from tech leaders to consumer goods and specialty retailers. Despite the broader market uncertainties, these stocks have shown resilience and are backed by strong business fundamentals and strategic initiatives that could fuel future growth. As investors look for solid performers for the summer and beyond, names like Netflix, Amazon, Nvidia, Boot Barn, and Philip Morris may be worth a closer look.

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