Heading into a new trading month, Oppenheimer has revealed its top stock ideas, all of which are poised to perform well given market conditions over the next 12 months. Centene, International Flavors & Fragrances and Agilysys were added to the list, while Salesforce, United Therapeutics and Trimble were deleted. Here are some of its best ideas: Walmart, the world’s largest retailer, has seen its shares rise nearly 28% this year, and Oppenheimer believes its shares still have room to rise. In Tuesday’s report, the company cited the potential for continued grocery market share growth, rising contributions from alternative revenue streams, continued gains from the company’s e-commerce investments and improvements in its international operations as long-term positives. Over time, these efforts will help drive an average of about 4% sales growth and more than 4% operating income growth, Oppenheimer said. While Oppenheimer has a $75 price target for the stock, which would imply an upside of about 8.9% from Monday’s closing price, JPMorgan is more optimistic. The firm recently upgraded Walmart to overweight from neutral and raised its price target to $81, which would represent an upside of about 17.6% by the end of next year. International Flavors & Fragrances, a recent addition to the list, could see its shares rise nearly 19% in 2024. Oppenheimer said the spices and food ingredients company emerged stronger on the other side of the industry downturn and its results should improve as the company focuses on strategy, productivity and strengthening its balance sheet. Although Jefferies is less bullish on the stock’s prospects, it still has a buy rating. The company expects raw material industry sales to recover in the second half of this year and expand further in the second half of next year. Broadcom is also on the list, although the stock is up nearly 43% this year. Oppenheimer set a price target of $2,000, which would imply a 25.6% upside from Monday’s closing price. Underpinning Oppenheimer’s positive outlook is his belief that the chipmaker has “one of the most strategically and financially attractive business models” in the industry. Analyst Rick Schafer cited the company’s position in the high-end filter market, efficient manufacturing and the potential for profitable growth and free cash flow generation. He also said that its non-mobile business is “sticky.” Bank of America also believes Broadcom has greater room to compete. On Monday, the firm raised its price target on Broadcom to $2,150 and said the stock was a top pick with a Buy rating. The company expects sales to double from fiscal 2024 to 2026.
