Wall Street analysts pounded the table for a slew of buy-rated stocks this week. With summer just around the corner, analysts said there are plenty of top companies for investors to choose from. CNBC Pro combed through top Wall Street research to find the must-own stocks for summer. They include: MarketAxess , Bowlero , Zillow, Liberty Media Formula One and Booking . Bowlero Stifel analyst Steven Wieczynski is doubling down on shares of the bowling company after a recent meeting with company management. The firm also added Bowlero to its Stifel Select List earlier this week, warning investors shouldn’t overlook the stock despite coming under “massive pressure.” “We come away with an even higher conviction of this story/stock and believe shares remain massively undervalued,” he said of the meeting with executives of the company. Wieczynski noted that a consumer slowdown is already baked into the stock which should give shareholders some comfort. Also not getting enough attention is Bowlero’s unappreciated acquisition of Lucky Strike which has tremendous upside, according to Wieczynski. Meanwhile, if consumers do begin to pullback, Wieczynski is now confident that management has plans in place. “We consider BOWL uniquely well-equipped to weather a downturn as well as or better than the rest of our coverage, both in terms of the appeal of the company’s core product and levers management can pull to protect profitability in the event of top-line contraction,” he said. Bowlero shares are down 11.2% this year. Zillow An “enticing buying opportunity remains” in Zillow, according to Stephens analyst John Campbell. The firm said earlier this week there’s no shortage of positive catalysts ahead for the online real estate company. Zillow is management is executing, he said, primarily by focusing on a “five pillar” strategy. “As far as the moving pieces, these initiatives are designed to: increase engagement, increase transactions and increase revenue per transactions, all of which will need to increase for ZG to have a shot at hitting its 2025 financial targets,” he said. Yet, even if the company doesn’t reach its long-term financial targets, Campbell said investors should stick with the stock. “ZG getting halfway to its EBITDA target would equate to a stock trading at < 10x discounted [in the] back half ’25 target EBITDA,” he added. Shares are up 39% this year, but the stock still has plenty of room to run, he went on to say. MarketAxess Atlantic Equities analyst Simon Clinch advised investors buy the dip in MarketAxess, the electronic trading platform for credit markets. The firm said its review of the company’s most-recent May trading volume report is encouraging creating a prime opportunity for investors. “Our analysis determines more stable pricing and market share trends than observed in April and May, which gives us confidence in growth beyond the temporary market dislocation,” he said. To be sure, Clinch acknowledged that pressures remain, but the “long term growth opportunity remains attractive” and headwinds should soon turn into tailwinds. “We would expect fundamentals to continue improving now that the debt ceiling impasse has been resolved.” Shares are up 1.5% this month, however, the firm said the “long-term opportunity is enticing.” “We view any weakness as an opportunity to build positions for long-term investors, though patience is required,” Clinch went on to say. Bowlero- Stifel, buy rating “We come away with an even higher conviction of this story/stock and believe shares remain massively undervalued. … BOWL shares have been under massive pressure since the company reported F3Q23 results back on May 16th. … We consider BOWL uniquely well-equipped to weather a downturn as well as or better than the rest of our coverage, both in terms of the appeal of the company’s core product and levers management can pull to protect profitability in the event of top-line contraction.” Zillow – Stephens, buy rating “Enticing Buying Opp. Remains. … Housing sentiment remains sour but, we think, not getting worse/eventual pause and drop in rates will likely trigger housing-related stocks, including ZG, higher. … .As a reminder, after ZG chose to wind down its iBuying business, the Company shifted it focus to 5 pillars of strategic focus, which it announced during its 4Q21 earnings call and are intended to help form the foundation of the ‘super app.’ … .ZG getting halfway to its EBITDA target would equate to a stock trading at < 10x discounted back half ’25 target EBITDA.” MarketAxess- Atlantic Equities, buy rating “”Our analysis determines more stable pricing and market share trends than observed in April & May, which gives us confidence in growth beyond the temporary market dislocation. … but the LT growth opportunity remains attractive. … We would expect fundamentals to continue improving now that the debt ceiling impasse has been resolved. … We view any weakness as an opportunity to build positions for long-term investors, though patience is required.” Liberty Formula One- Cowen, outperform rating “We are initiating coverage on Liberty Formula One Group with an Outperform rating and a $90 price target. We think the market is underappreciating that FWON is still in the early laps of improving asset utilization of the commercial rights. We see a clear path to above consensus 15%+ adj. OIBDA and LFCF CAGR through 2027, and the significant potential for buybacks to enhance shareholder value.” Read more about this call here. Booking Holdings- Argus, buy rating “We believe that BKNG shares are undervalued at current prices near $2,713. The shares are trading at 18.5-times our revised EPS estimate for 2023, below the average for other online booking companies. We believe that the current valuation inadequately reflects prospects for stronger revenue and earnings over the remainder of 2023. As such, our rating remains BUY. Our revised target price of $3080 implies a potential return of 14% from current levels.”
