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JP Morgan’s North American Equity Research team led by Thomas Lee is out with its U.S. Year Ahead 2012 report. The list includes the firm’s 65 long stock ideas.But their four “AVOID STOCK IDEAS” jumped out at us (They use that same text colour and highlighting in their report).
Here they are:
- First Solar (FSLR), Implied Upside -13%. Analyst Christopher Blansett believes “the stock will remain under pressure as pricing conditions in the solar sector become even more difficult in 2012.”
- Citrix Systems (CTXS), Implied Upside -28%. Analyst John DiFucci notes “the opportunity for Desktop Virtualization is much more cannibalistic than incremental, and is unlikely to be adopted by the masses of corporations given such elusive ROI.”
- Red Hat (RHT), Implied Upside -37%. Regarding Red Hat, DiFucci argues that the company is “misunderstood by investors, as the real business momentum of the company is exaggerated with a simple calculation of billings proxy.”
- Franklin Resources (BEN), Implied Upside +10%. Despite Franklin Resources’ projected gain, analyst Ken Worthington bearish as he expects “its flagship Templeton Global Bond fund goes out of favour due to poor currency investments and negative returns.”
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