![Bank of America says buy top stocks like Apple ahead of earnings](https://news7g.com/wp-content/uploads/2024/07/107273778-16897872822023-07-19t171351z_1703992288_rc2g62a711ul_rtrmadp_0_usa-china-cyber-microsoft-780x470.jpeg)
There are still plenty of buying opportunities in tech stocks, according to Bank of America. The investment bank said stocks like Apple are seeing strong buying ahead of its quarterly earnings report this week. CNBC Pro took a deep dive into Bank of America’s research to find tech stocks rated buys with more room to run. They include: Microsoft, Apple, Micron Technology, Shopify and Sea Limited. Apple Bank of America recently raised its price target on the iPhone maker from $230 to $256. Analyst Wamsi Mohan said Apple is operating at full steam ahead of what he calls the “iPhone refresh cycle.” Recent surveys from the bank show that Apple’s iPhone user base is ready to upgrade to products with AI features. Brand loyalty is paramount, the bank said. “14% of U.S. respondents said they plan to buy the Apple Vision Pro,” Mohan wrote. Apple is scheduled to report earnings next Thursday, August 1. “We reiterate our Buy rating based on the expected multi-year iPhone cycle driven by GenAI, strong services growth, and margin expansion,” he said. The stock is up 13.2% this year. Shopify It’s time to buy shares of the Canadian business website provider, according to Bank of America. Analyst Brad Sills recently upgraded Shopify to buy from neutral as “a more balanced growth and margin profile” kicks in. Sills said the company’s transition under its new CFO is also underway, with quarterly results due in early August. “Disciplined revenue and spending growth point to healthy margin expansion going forward,” he wrote. Sills sees Shopify as having multiple competitive advantages that bode well for significant market share gains going forward. “Shopify looks well positioned to continue to capture ecommerce market share, while achieving scale and [free-cash flow] transformation,” he continued. The stock is down 23% in the US this year. Shares of the Singapore-based internet technology company Sea Limited have risen 61% this year, but there is more room for upside, Bank of America said. Analyst Sachin Salgaonkar urged clients to stay calm as trends are showing improvement in the company’s gaming and Shopee divisions. Shopee is Sea’s Southeast Asian e-commerce platform. “In our view, the company is well positioned to capitalize on the e-commerce boom in Southeast Asia due to its increasingly dominant online marketplace (Shopee), while its expansion into Brazil offers further long-term growth potential,” he wrote. The bank said losses are bottoming out while acknowledging that competition with Sea is real. Still, the Wall Street firm reiterated its buy rating, urging clients to own the stock for the long term. “We see a steady competitive trend in the regionand expect acquisition rates to improve,” he added. Sea is scheduled to report quarterly earnings in August. Micron “AI drives strong pricing, mix, outsized opportunity ahead. We were pleased to host Micron CFO Mark Murphy, EVP Satya Kumar and Investor Relations Samir Patodia for our extensive investor meetings in Boston and New York. Key messages were bullish on: pricing, visibility, supply discipline and improving mix towards differentiated enterprise storage and AI computing products.” Microsoft “We believe MSFT is well positioned to generate sustainable low double-digit growth over the next 3-5 years, led by continued adoption of its Azure cloud infrastructure platform, cloud-based Office 365 productivity suite and higher-margin Games & Game Pass revenue on Xbox.” Sea Limited “”In our view, the company is well positioned to capitalize on the e-commerce boom in Southeast Asia due to its increasingly dominant online marketplace (Shopee), while its expansion into Brazil offers further long-term growth potential. … We see a steady competitive trend in the region and expect adoption to improve.” Apple “Strong multi-year iPhone refresh cycle with aging install base; PO to $256. …. We reiterate our Buy rating based on the expected multi-year iPhone cycle driven by GenAI, strong services growth and margin expansion. … 14% of US respondents said they are planning to buy an Apple Vision Pro.” Shopify “Disciplined revenue growth and spending point to healthy margin expansion going forward. … Shopify appears well positioned to continue to capture e-commerce market share while achieving scale and better FCF conversion. … More balanced growth and margin profile.”