BofA flags 3 stocks with upside for September

Bank of America’s equity research team identified three stocks it expects to outperform as markets move into September: ASML, Madison Square Garden Entertainment and Church & Dwight. The selections reflect company-specific catalysts rather than a single sector theme.

Didier Scemama recommended ASML within the semiconductor equipment sector, characterizing recent weakness as a buy-the-dip opportunity. BofA set a price target of €2,452, above consensus, based on projected EPS growth and expectations for expanding operating margins. The bank noted risks that include capacity constraints and rising competition for lithography equipment. ASML has trailed some peers over the past 12 months despite a sharp uptrend earlier in the year; BofA described that gap as an unjustified de-rating.

Peter Henderson highlighted Madison Square Garden Entertainment on the basis of improving operating leverage tied to live events. BofA cited a full forward booking calendar and higher per-show economics as drivers that should widen margins and lift adjusted operating income. Recent quarterly results showed elevated concert volume, a boost from the Knicks’ playoff run and increased sponsorship, signage and suite revenue. MSGE shares have risen about 45% year-to-date.

Anna Lizzul selected Church & Dwight as a management-led turnaround idea. BofA outlined portfolio recalibration across value and premium price points, and plans for innovation within core brands such as Arm & Hammer. The analyst expects these moves, along with deliberate portfolio reshaping, to push gross margins above prior company highs. Church & Dwight shares are up roughly 21% year-to-date and the stock carries a dividend yield near 1.21%.

BofA framed the three names as examples of different stock-recovery paths: a mispriced de-rating, a margin expansion story and a turnaround gaining traction. The bank’s estimates for each company sit on the optimistic side of consensus, reflecting its view that current market prices have not fully reflected the catalysts it identified.