Credit Suisse picks the best stock in each sector of the market

Credit Suisse published its latest list of top investment ideas on Wednesday.

Their analysts ranked up to 3 stocks based on a 6-12-month time horizon.

We’re highlighting one of their top stocks in each of the 8 sectors.

Note: These are a snapshot of the analysts’ top picks in the industries they cover, and should not be viewed as portfolios.

Basic Materials

Company: Monsanto

Ticker: MON

Price Target: $US141.00

Market Cap: $US58.6B

Comment: 'Increased biotech acres in S. America with stacked traits and the potential for further expansion into E. Europe via MON's hybrid seed portfolio should drive increased revenue and higher margins,' wrote Credit Suisse's Chris Parkinson. 'While 2015 growth will likely be below the historical average, we remain confident in a reacceleration in 2016 and beyond.'

Source: Credit Suisse


Company: SunEdison

Ticker: SUNE

Price Target: $US34.00

Market Cap: $US6.2B

Comment: 'SunEdison's solar project business is at an inflection point of growth as the company delivers on their solar project pipeline and expands into wind and smaller-scale distributed rooftop solar projects,' Credit Suisse's Patrick Jobin wrote. 'The company is well positioned with significant benefits of scale, cost of capital advantages given their recently-launched YieldCo vehicle, a low-cost poly JV with Samsung and a road-map to further cost reductions.'

Source: Credit Suisse


Company: Affiliated Managers Group

Ticker: AMG

Price Target: $US284.00

Market Cap: $US12.0B

Comment: 'We expect AMG's high organic growth rate (net flows) and accretive acquisitions (~2-3 over the next year) to drive positive EPS revisions and continued valuation expansion as investors become more comfortable with AMG's growth rate,' Credit Suisse's Craig Siegenthaler wrote.

Source: Credit Suisse

Health Care

Company: Celgene Corp.

Ticker: CELG

Price Target: $US145.00

Market Cap: $US96.3B

Comment: 'While the company's patent challenge has been the main focus of investors, Celgene's pipeline is not being priced into the multiple and represents asymmetric risk on the upside,' Credit Suisse's Ravi Mehrotra wrote.

Source: Credit Suisse


Company: TransDigm

Ticker: TDG

Price Target: $US230.00

Market Cap: $US11.5B

Comment: 'The best cash return story in Aerospace,' Credit Suisse's Rob Spingarn wrote. 'It leverages consistently strong cash flows and capital market access to build cash for M&A and special dividends.'

Source: Credit Suisse


Company: Gartner

Ticker: IT

Price Target: $US90.00

Market Cap: $US7.2B

Comment: 'Salesforce productivity has had a high correlation with Gartner's stock and contract value,' Credit Suisse's Anjaneya Singh wrote. 'Gartner's salesforce growth is in early innings, which should result in higher existing wallet share and new prospect conversion over time.'

Source: Credit Suisse


Company: Facebook

Ticker: FB

Price Target: $US104.00

Market Cap: $US223.2B

Comment: 'Our analysis leads to the following conclusions (1) FB will be able to drive revenue growth without material lift in ad loads, (2) Street models are too conservative and underestimate the long-term monetization, potential of upcoming new products, and (3) Optionality and upward bias to estimates which do not contemplate contribution from multiple other products (like Offers, 3P Mobile Ad Network, etc.),' Credit Suisse's Stephen Ju wrote.

Source: Credit Suisse

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