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LivestreamMenuBank of America named a slew of stocks that are best positioned heading into quarterly reports. The firm said that companies like IBM have plenty of upside as earnings approaches. Other buy-rated stocks stocks screened by CNBC Pro include: Spotify, IHG, Grab and Deutsche Bank. Spotify Analyst Jessica Reif Ehrlich is feeling bullish heading into the streaming company’s earnings report in early August. “We are confident that SPOT’s 2Q26 results will reflect stable underlying trends across key [key performance indicators], with reported revenue growth accelerating in the quarter primarily driven by moderating [foreign exchange] headwinds,” she wrote. Bank of America said it came away from Spotify’s recent investor day more confident, but that it now needs to see the execution. “The announced AI tier, broader monetization potential and multiple engagement levers highlight the long-term opportunity,” Reif Ehrlich said. Spotify shares are up 5% this month. IBM Shares of IBM are too attractive to ignore, according to the firm. Analyst Wamsi Mohan recently raised his target price to $330 per share from $315 ahead of the company’s earnings report later this month. The analyst said it expects software trends to be bolstered by the company’s acquisition of Confluent. “Upside [will be] driven by faster Confluent synergies and stronger growth in software and power & storage infrastructure,” he wrote. Meanwhile, shares are up 3.3% this month. “[Reiterate] Buy as IBM is mixing up to higher margin software (incl. M & A), driving strong FCF, & optionality from quantum,” he said. Deutsche Bank Analyst Tarik El Mejjad said he’s sticking with shares of the German banking giant ahead of earnings later this month. “We expect a softer quarter, with net profit down 2% [year over year] despite 4% revenue growth, as higher costs reflect strategic investments, Private Bank restructuring charges and continued hiring,” he wrote in a recent note to clients. Still, El Mejjad said he expects some silver linings like revenue upside from the company’s investment banking division. In addition, deposit growth remains robust. The firm also raised its price target to $39 per share from $38 and believes the stock is just too attractive to ignore. “One of Europe’s most compelling re-rating opportunities,” he said. The stock is up 8% this year. IHG “We think IHG’s geographically diversified asset-light model is resilient and drives visible profits and cash flow streams. Fee growth is driven by net system growth, a mix shift to the higher fee luxury segment and margin expansion. Conversions should support continued net system growth. IHG has strong cash return to shareholders with its progressive dividend and potential for recurring share buybacks.” Grab “We rate Grab Buy & find it well positioned to focus on revenue growth with profitability in mobility & deliveries business. Being a super-app helps Grab cross-utilize and amortize acquisition costs across multiple use cases. Grab’s super-app flywheel gives it a moat as ecosystem helps unlock synergies across the business segments.” Deutsche Bank “But we expect management to focus investors on the improving outlook rather than the quarter itself. … We expect a softer quarter, with net profit down 2% YoY despite 4% revenue growth, as higher costs reflect strategic investments, Private Bank restructuring charges and continued hiring. … One of Europe’s most compelling re-rating opportunities.” Spotify “We are confident that SPOT’s 2Q26 results will reflect stable underlying trends across key KPIs, with reported revenue growth accelerating in the quarter primarily driven by moderating FX headwinds. … The announced AI tier, broader monetization potential and multiple engagement levers highlight the long-term opportunity.” IBM “For F2Q, we expect rev/EPS/PTI [pretax income] margin of $18.0bn/$3.03/50bps and expect IBM to raise F26 guide modestly higher on revenues and FCF. While we do not reflect this in our ests, we see upside driven by faster Confluent synergies and stronger growth in software and power & storage in infrastructure. … Reit. Buy as IBM is mixing up to higher margin software (incl. M & A), driving strong FCF, & optionality from quantum.”Read More
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