Bank of America revealed several top tech companies that are best positioned heading into April. The investment bank said that investors should buy the weakness in companies such as Microsoft. Other stocks rated buy at Bank of America and screened by CNBC Pro include: Meta Platforms , Apple, PicPay Holdings and Payoneer Global. PicPay PicPay was recently initiated with a buy rating by analyst Mario Pierry. Bank of America says the Brazilian fintech company, which trades on the Nasdaq in the U.S. after a January IPO at $19 a share, is a “compelling growth story” that boasts roughly 43 million active users on its platform, the investment bank wrote. PicPay has a unique ability to service businesses of varying sizes, according to Pierry. “Revenue expansion should also be supported by new verticals, such as services to small- and medium size enterprises,” he wrote. PicPay also has a wide array of credit offerings, which should help boost profits from current customers. “We rate PicPay as Buy given strong earnings momentum (supported by monetization of existing clients and operational leverage gains), while valuation multiples are discounted vs LatAm and global peers,” he said. The stock is down about 39% in March but investors should buy the dip, Bank of America said. Microsoft Analyst Tal Liani reinstated coverage of the Windows and Xbox parent earlier this week, saying Microsoft is firing on all cylinders. The bank sees Microsoft as a key beneficiary of artificial intelligence in both applications and infrastructure. Liani added that demand remains robust for Microsoft’s Azure cloud infrastructure platform. “We believe that Microsoft is well positioned to generate sustained mid double digit growth in the coming 3 years, led by continued adoption of [the] Azure cloud infrastructure platform, cloud based Office 365 productivity suite and a growing number of AI solutions and services,” he said. Liani has a price target of $500 per share and says Microsoft shares have plenty more room to run. The stock is down 30% in the past six months, but remains compelling at current levels, Bank of America said. Payoneer Shares of the financial payment platform have plenty more room to run, according to the bank. Analyst Aditya Buddhavarapu initiated coverage of the stock earlier this week with a buy rating. Bank of America sees a host of positive catalysts, including a multi-trillion dollar growth opportunity and robust cash generation. “Payoneer’s positioning serves a very large addressable market with the [business to business total addressable market] at ~$6T while marketplace payouts is ~$300bn,” he wrote. Buddhavarapu has a price target of $6 per share and says the stock is too attractive to ignore at current prices. Payoneer is busy “building the moat,” the analyst said of Payoneer’s potential upside. Shares are up 11% over the past month. Meta Platforms “The top catalyst for the stock remains Avocado launch, and while the delay is disappointing, we think there are a number of other AI based consumer services in development (and not necessarily dependent on Avocado), which could launch this year, including AI video creation tools, Agentic, search, and subscriptions.” Apple “Our Buy rating on Apple is based on 1) expected strong iPhone upgrade cycle in F25, F26 driven by the need for latest hardware to enable Gen AI features, 2) higher growth in Services revenue, 3) higher margins from more internally developed silicon, 4) continuing capital returns, 5) AI features that can drive higher institutional ownership, and 6) risk around legal issues being manageable.” PicPay “New verticals add to a compelling growth story. … .Revenue expansion should also be supported by new verticals, such as services to small and medium size enterprises. … .We rate PicPay as Buy given strong earnings momentum (supported by monetization of existing clients and operational leverage gains), while valuation multiples are discounted vs LatAm and global peers.” Microsoft “A primary beneficiary of AI monetization. … .We believe that Microsoft is well positioned to generate sustained mid double digit growth in the coming 3 years, led by continued adoption of Azure cloud infrastructure platform, cloud based Office 365 productivity suite and a growing number of AI solutions and services.” Payoneer “Multi-trillion $ market opportunity – building the moat. Payoneer’s positioning serves a very large addressable market with the B2B TAM at ~$6T while marketplace payouts is ~$300bn. Payoneer’s differentiation is the combination of (i) broad regulatory coverage and partner rails, (ii) an account‑centric experience tuned to SMB workflows…”
Buy these five tech stocks as market turbulence continues, Bank of America says
view original post