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Amazon, Walmart, Target Stocks Top Picks by Bank of America

The long-term growth thesis [remains] intact' for e-commerce titans such as Amazon, Walmart and Target, Bank of America analysts say.
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Amazon  (AMZN) - Get Amazon.com, Inc. Report, Walmart  (WMT) - Get Walmart Inc. Report and Target  (TGT) - Get Target Corporation Report rank among Bank of America’s top eight picks for global e-commerce stocks.

The other five are Farfetch  (FTCH) - Get Farfetch Limited Class A Report, Singapore’s Sea Ltd.  (SE) - Get Sea Ltd. (Singapore) Sponsored ADR Class A Report, China’s JD.com  (JD) - Get JD.com, Inc. (JD) Report, South Korea’s Coupang  (CPNG) - Get COUPANG, INC. CLASS Report and Argentina’s MercadoLibre  (MELI) - Get MercadoLibre, Inc. (MELI) Report.

The outlook for the e-commerce sector includes a slowing for the short term, as the economy reopens from the pandemic, say Bank of America analysts led by Justin Post. “But the long-term growth thesis [remains] intact.”

“While growth has slowed in 2021 and competitive concerns have grown as Amazon is accelerating investment in one-day shipping, our BofA card data suggest Amazon is gaining U.S. e-commerce share,” Post said.

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“We see upside potential to over $4,500 based on comparison multiples.” His official price target is $4,250. Amazon on Wednesday closed at $3,284.28, up 1.1%.

As for Walmart, it “is leveraging its dominant U.S. store footprint (with close to 5,000 locations) and broad multi-category assortment (with grocery and general merchandise) to support localized same-day fulfillment advantages,” said Bank of America analyst Robby Ohmes.

“WMT is offering pickup and delivery on more than 160,000 items as early as same-day.” Ohmes has a price target of $190. Walmart Wednesday closed at $138.37, down 0.7% at last check.

Ohmes said Target is “positioned to drive continued digital momentum, particularly through its same-day offerings--Drive Up, Pick Up and Shipt. It should be well positioned for the holidays as … it likely benefits from port access that many competitors do not have.”

His target price for Target is $317. Its stock Wednesday closed at $236.75, up 2.8%.