UBS has released its top stock picks for the year.
In a note out Wednesday morning, the Swiss bank says it asked all of its North America analysts their top pick for the next 12 months. It came up with a list of 30 stocks that should outperform over the next year.
For each stock, UBS analysts laid out on one page how they got to their investment thesis, what’s driving the stock, and potential upside or downside movements.
We rounded up UBS top picks in the telecom, media and technology space. Here’s what the bank had to say:
Current price: $US384
UBS price target: $US450
UBS' take: 'With M&A speculation surrounding Charter in recent months, we walked through the scenarios as reported by the press. We believe all options would be compared to Charter levering up the business itself and buying back its own shares, which we estimate could drive 15%+ appreciation to our current 2020 FCF/sh estimate and increase the FCF/sh CAGR from 30% to 38%.'
Current price: $US183
UBS price target: $US190
UBS' take: 'We believe Netflix's core competencies in both content and technology will drive a virtuous circle of greater subs and increased viewing time, enabling higher ARPU and revenue, which will fuel content spending to attract even more subscribers, and so on, positioning Netflix to sustain its position as the clear global leader in the emerging online video subscription business.'