We have reported at great length recently on the lists put out by Wall Street firms that highlight their best of the best picks. Whether it is the “Conviction Buy List,” a “Focus List,” or “Key Call” list, they all have one thing in common. The firms’ analysts have submitted to the head of research the stock or group of stocks they feel have absolutely the best chance to perform well in the next six to twelve months. Today we review the “Key Call” list from UBS AG (NYSE: UBS).
In choosing 9 names for the “Key Call” list, UBS has spread around the sectors to give investors the opportunity to have a wide diversification element for their portfolio. We have looked at the upside here on each. We also compared the UBS target to the consensus price target from Thomson Reuters to see how the bias on each call compares to peers. Here are the current names:
1) Anadarko Petroleum Corporation (NYSE: APC). Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids(NGLs) in the United States, Algeria, and internationally. Trading today at $77.91, UBS has a $100 price target which is more or less the same as the consensus target price.
2) Constellation Brands Inc. (NYSE: STZ). Constellation Brands, Inc. produces and markets beverage alcohol in the United States and internationally. Constellation which reported earnings today is trading at $35.67 and has a $42 price target. The consensus target price is $41 currently.
3) KeyCorp. (NYSE: KEY). KeyCorp operates as a holding company for KeyBank National Association that provides various banking services in the United States. UBS has a $10 price target and today KeyCorp is trading at $8.94. The consensus target is $9.42 as of now.
4) Lowe’s Companies Inc. (NYSE: LOW). Lowes Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Trading today at $34.91 the target price is $41. Be advised that UBS is far higher than the consensus target price of almost $37 and its target is only $1 shy of the street high target price.
5) Monster Beverage Corp. (NASDAQ: MNST). Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes alternative beverage category beverages in the United States and internationally. A name always in the rumor mill to be acquired Monster Beverage has a $77 target and is trading today at $49.03. UBS is much higher than the consensus target price of almost $63 for Monster.
6) Questar Corp. (NYSE: STR). Questar Corporation operates as an integrated natural gas company in the United States. Up slightly in today’s trading at $21.04 the target price is $23 versus a street consensus of almost $21.50 here.
7) Tesoro Corp. (NYSE: TSO). Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. Up over 3.5% today to $41.91, the UBS target is $53 and that is a few cents under the street consensus target.
8) Time Warner Inc. (NYSE: TWX). Time Warner Inc. operates as a media and entertainment company in the United States and internationally. Trading just below the 52 week high today at $49.53 and with a $50 price target this name could be removed soon. The street is also just above $50 on Time Warner.
9) U.S. Bancorp (NYSE: USB). U.S. Bancorp, a financial services holding company, provides various banking and financial services in the United States. Up just slightly today at $33.38, the price target is $38 and that is above the $36.91 current consensus price target.
UBS like many Wall Street firms takes the view that the budget battle could get very heated as it did in the summer of 2011. So in the near term it may be smart to be patient and carefully scale money into stocks that fit your risk parameters.