CITI PRESENTS: The 27 Greatest Consumer Brands In The World

nike air jordan 28 sneakers

Photo: Nike

Citi has has identified the 27 “World Champions” of the consumer discretionary sector.The team of analysts led by Greg Badishkanian believes that these companies have “significant and enduring business models over the long term.”

Citi’s analysts also have favourable ratings on all of these stocks.

Here’s Badishkanian’s screening criteria:

  • Market cap exceeds $3 billion;
  • Minimum of top 3 in market share in a third of the company’s businesses; and
  • Significant revenue streams from outside its domestic market.

The note very expressly states that subjective factors were instrumental in creating the list.

The report also highlights Coach, Intertek, and Nissan as the “best of the best” in their sectors based on financial and qualitative analysis.

Adidas

Ticker: ADS

Target Price: €76.00

3-yr EPS Growth: +16.4 per cent

Sub-Sector: Textiles, Apparel and Luxury Goods

'Why it's a Champion': Adidas holds 20 per cent of global sportswear market share, and stands to benefit from sales growth and scale economies.

Source: Citi Research

Amazon.com

Ticker: AMZN

Target Price: $275.00

3-yr EPS Growth: +2941.0 per cent

Sub-Sector: Internet & catalogue Retail

'Why it's a Champion': Amazon is the leading online retailer in the U.S. and around the world,and remains well-positioned for continued market share gain and profit margin growth internationally.

Source: Citi Research

BMW

Ticker: BMW

Target Price: €68.00

3-yr EPS Growth: -2.6 per cent

Sub-Sector: Automobiles

'Why it's a Champion': Globally, BMW is near the top of the luxury car industry, but faces risks to its growth in China.

Source: Citi Research

Borg Warner

Ticker: BWA

Target Price: $76.00

3-yr EPS Growth: +11.6 per cent

Sub-Sector: Auto Components

'Why it's a Champion': Borg Warner is a leading supplier of powertrain and transmission technologies, and expects an increase in business due to a spike in diesel fuel demand.

Source: Citi Research

Bridgestone

Ticker: 5108: Tokyo

Target Price: ¥2010

3-yr EPS Growth: +24.5 per cent

Sub-Sector: Auto Components

'Why it's a Champion': Bridgestone has 16 per cent of the global tire market, making the company the largest tire maker on the planet.

Source: Citi Research

Carnival Corp

Ticker: CCL

Target Price: $44.00

3-yr EPS Growth: +9.1 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': Around the world, Carnival has the highest market share of cruise passengers.

Source: Citi Research

Coach

Ticker: COH

Target Price: $67.00

3-yr EPS Growth: +15.6 per cent

Sub-Sector: Textiles, Apparel, & Luxury Goods

'Why it's a Champion': By unit, Coach leads the world in imported luxury handbags, as the company continues to dominate the U.S. market with a 28 per cent share.

Source: Citi Research

Compass Group

Ticker: CPG.L

Target Price: £8.00

3-yr EPS Growth: +9.1 per cent

Sub-Sector: Hotels, Restaurants & Leisure

'Why it's a Champion': Compass Group's shareholders are likely to receive double-digit returns from an expansion of profit margins.

Source: Citi Research

Denso

Ticker: 6902: Tokyo

Target Price: ¥3000

3-yr EPS Growth: +19.2 per cent

Sub-Sector: Auto Components

'Why it's a Champion': The upwards trend in global market share is expected to continue for this auto-parts company.

Source: Citi Research

eBay Inc

Ticker: EBAY

Target Price: $50.00

3-yr EPS Growth: +15.3 per cent

Sub-Sector: Internet Software & Services

'Why it's a Champion': Citi's analysts favour eBay, the leading online marketplace, while claiming it is neutral on valuation.

Source: Citi Research

Edenred

Ticker: EDEN

Target Price: €25.00

3-yr EPS Growth: +10.7 per cent

Sub-Sector: Commercial Services & Supplies

'Why it's a Champion': Edenred is the global leader for employee and public benefits products and services -- a highly cash-intensive business.

Source: Citi Research

Fossil Inc

Ticker: FOSL

Target Price: $108.00

3-yr EPS Growth: +16.4 per cent

Sub-Sector: Textiles, Apparel, & Luxury Goods

'Why it's a Champion': Fossil has 40 to 50 per cent of the mid-priced watch market share in the U.S., and 10 per cent of the global watch market share.

Source: Citi Research

Harley-Davidson

Ticker: HOG

Target Price: $58.00

3-yr EPS Growth: +12.1 per cent

Sub-Sector: Automobiles

'Why it's a Champion': The motorcycle behemoth has a third of the global market share and half of the domestic market share, while improving margins.

Source: Citi Research

Hyundai Motor

Ticker: 005380: Korea SE

Target Price: ₩280000

3-yr EPS Growth: +10.3 per cent

Sub-Sector: Automobiles

'Why it's a Champion': Hyundai is the sixth largest automobile maker in the world.

Source: Citi Research

Inditex

Ticker: ITX

Target Price: €115.00

3-yr EPS Growth: +16.3 per cent

Sub-Sector: Specialty Retail

'Why it's a Champion': This fashion retailer has seen an acceleration in store openings and exceptional growth in Asian and other emerging markets.

Source: Citi Research

Intercontinental Hotels

Ticker: IHG

Target Price: £19.00

3-yr EPS Growth: +8.3 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': By number of rooms, Intercontinental ranks as the largest hotel company in the world.

Source: Citi Research

Intertek

Ticker: ITRK

Target Price: £31.50

3-yr EPS Growth: +16.4 per cent

Sub-Sector: Professional Services

'Why it's a Champion': Intertek is positioned to continue its strong organic growth as the global market leader in Consumer Testing.

Source: Citi Research

Las Vegas Sands

Ticker: LVS

Target Price: $58.50

3-yr EPS Growth: +18.0 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': Las Vegas Sands is expected to continue its market share gains in Macau and Singapore.

Source: Citi Research

LVMH

Ticker: MC:EN

Target Price: €148.00

3-yr EPS Growth: +13.6 per cent

Sub-Sector: Textiles, Apparel, & Luxury Goods

'Why it's a Champion': In terms of revenue, LVMH is the largest producer and distributor of luxury goods, and has some of the highest returns int he industry.

Source: Citi Research

Nike

Ticker: NKE

Target Price: $100.00

3-yr EPS Growth: +11.3 per cent

Sub-Sector: Textiles, Apparel, & Luxury Goods

'Why it's a Champion': Nike has a substantial hold on the global footwear market, with 37 per cent market share, and an impressive 10 per cent in the global apparel market as a whole.

Source: Citi Research

Nissan Motor

Ticker: 7201: Tokyo

Target Price: ¥1000.00

3-yr EPS Growth: +13.1 per cent

Sub-Sector: Automobiles

'Why it's a Champion': Nissan is the leading global auto company and has seen its brand value improve via increased sales.

Source: Citi Research

Polaris Industries

Ticker: PII

Target Price: $102.00

3-yr EPS Growth: +19.5 per cent

Sub-Sector: Leisure Equipment & Products

'Why it's a Champion': Polaris is the world's leader in market share for off-road vehicles, and innovation is expected to help the company outpace the industry.

Source: Citi Research

Royal Caribbean Cruises Ltd.

Ticker: RCL

Target Price: $41.00

3-yr EPS Growth: +7.7 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': Royal Caribbean has 25 per cent market share of cruise passengers around the globe, with opportunities to expand internationally.

Source: Citi Research

Starbucks

Ticker: SBUX

Target Price: $63.00

3-yr EPS Growth: +20.0 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': Starbucks, one of the world's largest coffee chains, stands to benefit from the cyclical recovery int he U.S. and international expansion.

Source: Citi Research

Starwood Hotels & Resorts

Ticker: HOT

Target Price: $65.00

3-yr EPS Growth: +12.0 per cent

Sub-Sector: Hotels, Restaurants, & Leisure

'Why it's a Champion': This hotel chain controls some of the market's strongest brands, such as Sheraton and Westin.

Source: Citi Research

Swatch Group

Ticker: UHR

Target Price: ₣402.00

3-yr EPS Growth: +10.2 per cent

Sub-Sector: Textiles, Apparel, and Luxury Goods

'Why it's a Champion': Swatch is the global leader in the production and sale of finished watches.

Source: Citi Research

Volkswagen

Ticker: VOW

Target Price: €150.00

3-yr EPS Growth: +34.2 per cent

Sub-Sector: Automobiles

'Why it's a Champion': Citi's analysts believe Volkswagen is undervalued given its P/E ratio, and sees strong performance from the top global car manufacturer (by units).

Source: Citi Research

See what these companies and others are saying about the year ahead.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.