Fight the market malaise with these ‘attractive’ stocks, Bank of America and Goldman say


Wall Street analysts aren’t deterred by questions about the direction of the stock markets in September, which is a traditionally gloomy month. They have found a number of stocks that they recommend. Goldman Sachs & Bank of America have named a number of companies that they believe will see a rise in value over the next few weeks. CNBC Pro has scoured recent Wall Street research for the best stocks to buy as September begins. NextEra is one of them, along with Marathon Petroleum, Endeavor, and H Group World Limited. Carley Davenport, Goldman analyst, says: NextEra Energy Buy shares in the renewable energy company at a discount. Investors have been focusing on NEE’s poor performance in recent months and trying to figure out what is causing it, she wrote in a letter earlier this week. Goldman suggests that investors should instead look forward to several positive catalysts in the months ahead. Davenport, a shareholder at the company, says that she is increasingly confident in its new management team. She added, “We understand that investors can take some time to gain confidence in a new management team. However, we are confident that the NEE management team is capable of achieving the robust growth plans that the company has set out.” Goldman also says that the growth of renewable backlog is increasing, which will help earnings in future quarters. Davenport said that investor anxiety over NextEra’s Florida Power & Light utility is due to a ongoing investigation into campaign finance violations. The investment bank believes that a resolution will come sooner than later and have a minimal financial impact on the company. She says that the stock has dropped 20% in value this year and shares are just too “attractive to ignore” at their current levels. Jessica Reif Ehrlich, an analyst at Endeavor Group Bank of America, said this week that the shares of media company offer a “striking” value. Reif Ehrlich stated that investors do not give the company credit enough for its “entourage” of highly appealing assets. The closing of TKO’s transaction, which will replace the combined WWE and UFC, is a positive catalyst. BofA stated that dividends and buybacks are also positive catalysts. If none of these catalysts lead to a revaluation in the shares, management could then take more transformative measures to create shareholder value,” added she. The bank also noted that the resolution of both Hollywood strikes would likely drive shares higher. Reif Ehrlich believes Endeavor’s stock is attractively priced, despite its modest 1% gain this year. Reif Ehrlich wrote, “We continue to see EDR as a group of highly compelling assets, each with exposure to favorable secular headwinds in the Media and Entertainment Industry.” Marathon Petroleum The oil refiner is coming off a “better-than-expected” second-quarter top and bottom line beat in early August, according to Goldman Sachs analyst Neil Mehta. He wrote that the shares have a lot more potential to grow, even though they are up 25 percent this year. Mehta’s strong earnings report prompted him to increase his estimates for earnings per share and raise his price target from $146 to $153. Goldman has praised Marathon’s management and praised its robust margins, strong demand trends, and growth initiatives including new renewable diesel plants. Mehta also noted Marathon’s commitment to shareholder returns through dividends, buybacks and other means. He added that MPC’s share buybacks were $3.1billion, which was above our estimate of $2.75billion. Mehta concluded that Goldman is “constructive” about MPC, given its “attractive refining set-up” and “leading shareholder returns.” Buy rating for Endeavor Group – Bank of America “An entourage of attractive assets.” The recent run-up in WWE shares has created a striking value. …. “Should none these catalysts lead to a revaluation in shares, management may consider more transformative action to create shareholder value.” NextEra Energy – Goldman Sachs, buy rating We recognize that investors can take some time to gain confidence in a new management team, but we are confident that NEE’s management team is capable of achieving the robust growth plans that the company has set forth. We continue to think that the valuation is attractive …” Bank of America, Buy rating “Shares are weak despite good results = attractive opportunity.” H World Group is a fast-growing and leading hotel chain in China that was founded in 2005. We have a Buy Rating on H World Group for three reasons: (i) upside risks to the company’s revenue/RevPAR guidance