BofA Maintains 'Buy' rating for Nvidia and Apple, Includes in June's Preferred Stock List
Taylor Wilson
Bank of America named six stocks as its June top picks — Nvidia, Apple, Citigroup, Dollar General, National Vision, and Toll Brothers — seeing meaningful upside in each; AI growth and valuation recovery are the two threads running through the list.
Who made the list — and what ties them together?
BofA's June top picks span six names: Nvidia, Apple, Citigroup, Dollar General, National Vision Holdings, and Toll Brothers.
This means → BofA is betting on AI-driven tech leaders and beaten-down value names at the same time, not just one direction.
In plain terms = half the list says "the strong get stronger," the other half says "oversold means opportunity."
Nvidia and Apple — what is the AI case?
Nvidia's case rests on its full-stack leadership in AI chips — silicon, hardware, and software — plus strong free cash flow to fund ecosystem investment and shareholder returns.
Apple's case is more specific: BofA expects a strong iPhone upgrade cycle in fiscal 2025 and 2026, driven by generative-AI features that require the latest hardware.
Apple gets additional credit for accelerating services revenue, higher margins from in-house chips, potential for AI features to lift institutional ownership, and what BofA views as manageable legal risk.
Citigroup — why raise the target from $150 to $170?
Citi has rallied 67% over the past 12 months. CEO Jane Fraser announced a $30 billion buyback authorization at a recent investor day.
Analyst Ebrahim Poonawala then raised his 12-month target from $150 to $170.
His words: "The cohesion of the management team was particularly notable… the 'engine' has been rebuilt." This reflects BofA's view that Citi's turnaround has moved from narrative to execution.
Poonawala also flagged Citi's AI push, noting partnerships with Anthropic and Google.
Dollar General and National Vision — why catch a falling knife?
Dollar General is down 17% year-to-date, falling for three consecutive months. BofA's bull case: ongoing store remodels, delivery partnerships with Uber and Instacart adding incremental traffic, and room for gross-margin expansion.
National Vision is down even harder — 29% in May alone — with its valuation at roughly 7× estimated 2027 EV/EBITDA, near historic lows.
In plain terms = BofA is betting on "opportunity born from the selloff": rising average ticket, store-tiering improvements, and Meta AI glasses as a potential catalyst.
Toll Brothers — a rare bright spot in a tough housing market?
BofA analyst Rafe Jadrosich called Toll Brothers' latest quarter a "rare" beat-and-raise.
Key number: fiscal Q2 gross margin hit 26.2%, above expectations. Q3 margins may dip on product mix, but Q4 is expected to recover.
The stock is down 12% over the past three months. This means → in a sector under macro pressure, BofA picked the builder whose earnings are holding up, citing regional positioning, capital returns, and resilient luxury-home demand.
Content is for reference only, not financial advice.