Financial institution of America dropped its high 10 inventory concepts for the third quarter of 2025, and the listing consists of some acquainted names like Boeing Co. BA and Cisco Methods Inc. CSCO—but additionally a few bearish calls buyers may not see coming.
Whereas Wall Road debates price cuts, BofA is sticking to some of the hawkish forecasts on the market: no Fed pivot till 2026.
Subsequent 12 months, the central financial institution is anticipated to slash charges by 100 foundation factors, however till then inflation is more likely to stay sticky within the second half of this 12 months because of tariffs, limiting coverage flexibility.
This creates a buying and selling setting the place stock-specific catalysts matter greater than macro tailwinds.
The up to date listing options eight Purchase-rated shares and two Underperform-rated names, all chosen for his or her potential to outperform—or underperform—because of main enterprise or macro developments anticipated within the coming months.
The 8 Buys: From Aerospace to AI
1. Boeing Co. After a tough 12 months of delays and scrutiny, BofA thinks Boeing is lastly gaining altitude. “787 manufacturing is ramping, 737 deliveries are recovering, and optimistic modifications to management together with new CFO rent,” stated analyst Anthony Cassamassino. The agency sees upside as manufacturing hits 38 jets per thirty days, and the brand new CFO—who got here from Lockheed Martin Corp. LMT —provides stability. Financial institution of America set a value goal of $260, which means a 14% upside from Boeing’s present value close to $225.
2. Cisco Methods Inc. AI is fueling Cisco’s momentum. “AI infrastructure orders YTD exceeded $1.3bn,” already beating its full-year goal, BofA wrote. With deep ties to Nvidia and a powerful maintain in enterprise switching, Cisco is positioned nicely as firms gear up for AI deployment. With shares buying and selling round $68, BofA’s $76 goal suggests a 11% acquire within the close to time period.
3. Datadog Inc. DDOG rounds out the AI-heavy picks. BofA likes Datadog’s enhancing utilization progress and its 8.5% AI-native income contribution, calling it one of many best-positioned software program shares for the subsequent wave of generative AI adoption. BofA sees shares climbing to $150, providing a couple of 9% upside from the present degree of $137.
4. Truthful Isaac Corp. FICO. Regardless of some Washington noise round credit score scoring, Cassamassino says, “FICO stays a best-in-class software program compounder.” With a $1 billion buyback plan and powerful ACV progress, the agency gave a daring value goal of $3,700, greater than double the present value.
5. KeyCorp KEY is BofA’s high worth play in regional banking. A 5% yield, clear credit score profile, and capital expenditure tailwinds give it a path larger. At a present value of $18.32, BofA’s $20 goal represents a 13% transfer larger.
6. Levi Strauss & Co. LEVI is on the listing due to strong model momentum and better-than-expected U.S. wholesale progress. “Execution stays robust throughout each denim and life-style attire,” BofA wrote.
7. Medtronic PLC MDT might be a breakout play if its new coronary heart remedy expertise will get greenlit. Cassamassino says approval of Pulse Discipline Ablation and renal denervation “might drive significant upside.” BofA sees the inventory climbing to $100, a 15% acquire from its present value of $87.
8. Warner Bros. Discovery Inc. WBD. BofA sees the corporate’s upcoming company break up, Superman reboot and $2 billion debt discount as key catalysts. At simply $11.73 now, the inventory might rally 40% to $16, if BofA’s view performs out.
The Bear Calls: Hims & Hers and Conagra
Not each identify on the listing is a winner. BofA slapped Underperform scores on two shares it believes are overvalued or dealing with headwinds.
Hims & Hers Well being Inc. HIMS has soared on buzz round compounded weight-loss medicine, however BofA says patent dangers are being ignored. “Litigation threat is underappreciated,” the analysts wrote, and progress within the firm’s base enterprise is slowing. Goal: $28, nicely under the inventory’s current degree close to $50.
Conagra Manufacturers Inc. CAG is the opposite quick thought. Cassamassino sees a delicate 12 months forward because of “rising protein prices and elasticity in frozen.” Add in margin strain and dividend threat, and BofA is skeptical the inventory holds up.
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