4 high-potential stocks according to Investing.com’s Bank of America

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Investing.com – Rising interest rates, soaring energy prices and political turmoil in parts of the world have hurt equities ahead of the final quarter of this year. However, Bank of America (NYSE 🙂 still sees high-potential stocks for the final quarter of this year.

4 high-potential stocks according to Bank of America

STMicroelectronics (EPA :), the electronic chip maker, is expected to see its shares rise 108.4% to reach 71 euros by next July, according to BoA. STMicro, the largest semiconductor manufacturer in Europe, benefited enormously from the shortage of microchips in the first half of the year and recorded its highest gross margin in the past two decades, according to banking research.

“We expect prices and product mix to hold up in the second half given current supply constraints. We expect gross margins to continue to improve over the medium term thanks to higher prices and a better product mix.”

According to the Investing Pro model, the stock should have an average fair value of € 47.82, with an upside potential of 34.5%. The stock price is in the middle of its 52-week range. Analysts expect an average price of € 52.02 with a range between € 25 and € 75.

Fortune (HE :), a Finnish energy company, could see its shares rise by more than 40% to reach € 20 per share by next September, according to the bank.

A € 4 billion loan owed by Uniper, the recently nationalized German energy giant, and another € 4 billion in guarantees have ‘weighed heavily’ on the share price this year, according to the Bank of America. However, according to the bank, the nationalization of Uniper means that the company has “risked” its balance sheet of € 8 billion.

The stock should have an average value of € 15.75 according to the Investing Pro model, representing an upside potential of 16.5%. The stock price is at the bottom of its 52-week range which offers upside potential. Analysts expect an average price of € 16.86 with a range between € 11 and € 22.

Equinor (OL :), a Norwegian energy company, could see its shares rise 24% to Norwegian kroner 453, according to the bank.

The bank believes the producer is the main beneficiary of the surge in energy prices in Europe, as it offers the most important alternative to Russian gas for the continent. “Therefore, we expect the gas price to stay higher longer and Equinor to be the main beneficiary.”

The stock is expected to have a fair value of NOK 492.84 on average under the Investing Pro model, representing a potential upside of 31.4%. The share price is above its 52-week range, posing a downside risk. Analysts expect an average price of NOK 401.60 with a range of NOK 270 to 510.

Croda (LON :), a specialty chemicals company, is now debt free after a £ 700 million asset sale earlier this year. As a result, Bank of America expects the clarity of its balance sheet will benefit its share price during a period of rising interest rates. According to the bank, the company’s share price is expected to rise by 22.9% by next August.

Debt-free, the company should be able to launder more of its profits into new healthcare investments and improve its revenues in the future.

The stock is expected to have a fair value of 7,244.59p on average under the Investing Pro model, representing a potential upside of 7.4%. The stock price is at the bottom of its 52-week range which offers upside potential. Analysts expect an average price of 8,223 pence with a range between 5,400 and 10,445 pence.

Check out the Investing Pro models for more details on the quoted stocks and their fair values, as well as other indicators.

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