CREDIT SUISSE: Here are 9 Canadian stocks set to pop by at least 15%

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Credit Suisse just revealed its list of top Canadian stock picks.

In a note to clients on May 4, it highlighted nine stocks identified by its analysts as top picks based on a six to 12 month time horizon. All of the companies are either in commodities or related to commodities, and Credit Suisse has price targets between 15% and 40% above where the stocks are currently trading.

Here are the picks:


Nexa Resources

Markets Insider

Ticker: NEXA

Price Target: $US23 (+34% from current levels)

Market Cap: $US2.2 billion

Thesis: “We rate NEXA Outperform owing to our bullish view on zinc into 2018 and NEXA’s exposure to zinc at 60% of revenues.”


TransCanada Corp.

Markets Insider

Ticker: TRP

Price Target: $US70 (+63% from current levels)

Market Cap: $US49 billion

Thesis: “We view TransCanada Corp. as facing a number of catalysts following the Columbia Pipeline Group acquisition re-rating earlier in the year.”


Enbridge Inc.

Markets Insider

Ticker: ENB

Price Target: $US55 (+77% from current levels)

Market Cap: $US67.3 billion

Thesis: “Following the Line 3 Replacement (L3R) decision from the Minnesota Administrative Law Judge, we believe the last of the major negatives has played out for the stock.”


Emera Inc.

Markets Insider

Ticker: EMA

Price Target: $US48 (+14% from current levels)

Market Cap: $US9.3 billion

Thesis: “The growth outlook for effectively regulated solar in the state of Florida combined with repowering efforts at TECO’s coal fired facilities.”


Encana Corp.

Markets Insider

Ticker: ECA

Price Taret: $US17 (+29% from current levels)

Market Cap: $US12.5 billion

Thesis: “ECA is now poised to grow production and cash flow meaningfully over the medium term, with an inventory of more than 10k “premium” locations concentrated in the Permian and Montney stacked plays.”


Enerplus Corporation

Markets Insider

Ticker: ERF

Price Target: $US20 (+69% fro current levels)

Market Cap: $US3.7 billion

Thesis: “We continue to expect ERF to grow debt and dividend-adjusted cash flow per share (CFPS) at a relatively robust rate vs. our coverage universe over the next three years while maintaining strong financial metrics.”


Suncor Energy

Markets Insider

Ticker: SU

Price Target: $US56 (+44% from current levels)

Market Cap: $US79.9 billion

Thesis: “Beyond the completion of Fort Hills and Hebron, we believe SU’s oil sands margins will expand materially over the next several years from asset synergies and new technologies that could structurally reduce the costs of its large oil sands asset base and grow significant free cash flow over the long run.”


Agnico Eagle Mines Limited

Markets Insider

Ticker: AEM

Price Target: $US60 (+42% from current levels)

Market Cap: $US10 billion

Thesis: “AEM is a top pick for its strong exploration and project pipeline, which leads to a growth pipeline without the need for M&A and strong balance sheet and operating track record, which makes it less leveraged to gold price moves than peers.”


Goldcorp inc.

Markets Insider

Ticker: GG

Price Target: $US18.50 (+37% from current levels)

Market Cap: $US11.8 billion

Thesis: “GG has reestablished a good operational track record by achieving 2016 and 2017 production and AISC guidance. Production growth of ~18% to 2.90Mozs in 2020 is second best in its peer group, with the added benefit of FCF over both years.”


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