Credit Suisse's Top Picks for Huge Upside in 2015: Micron, Tesla, Southwest and More
As more of the top firms we cover here at 24/7 Wall St. fine-tune or release the top picks from the analysts at their firms, we are definitely seeing a trend. The long-running bull market has made many analysts cautious about everything from currency headwinds to overvaluations to geopolitical issues. This caution is good for investors looking to stay involved with equity holdings. A new and sizable report from Credit Suisse highlights the firm’s top picks for 2015.
With 144 top ideas from the Credit Suisse analysts, that represents 16% of the more than 900 companies covered by the firm. We scanned through all the picks looking for the stock ideas with the biggest upside to the Credit Suisse price targets. It makes for an eclectic group of stocks to buy to say the least.
Goldman Sachs Group Inc. (NYSE: GS) continues to be the gold standard of Wall Street banks, and the Credit Suisse team views the firm as best-in-class. With a high net worth clientele, top investment banking and capital markets expertise, the firm continues to be a dominant force around the world. Very few firms can dictate who can be a customer, and Goldman is one of those few. The company is another major Wall Street firm that is benefiting from the long, secular bull market run. The analysts feel that Goldman will continue to deliver fundamental results that are at the high end of the peer group.
Goldman Sachs investors are paid a 1.35% dividend. The Credit Suisse price target is $225. The Thomson/First Call consensus estimate is much lower at $192.23. Goldman Sachs closed Wednesday at $178.78.
This leader in DRAM chip sales is one of the top Credit Suisse memory picks. With a potential looming memory shortage, Micron Technology Inc. (NASDAQ: MU) stock could have serious upside potential. The latest data indicates that David Einhorn’s Greenlight Capital still holds around 30 million shares of the stock, after selling some in the late summer and fall last year. The Credit Suisse analysts see strong growth for DRAM, especially from the in-memory and handset silos. They also think they company has earnings-per-share potential as high as $5.
The Credit Suisse price target is a whopping $50, and the consensus target is $42.34. Micron closed Wednesday at $29.03.
Despite it being the momentum buyer’s dream stock over the past two years, volatility has hit the electric car maker recently. Some Wall Street analysts project a successful production ramp for the company of 1,900 vehicles per week run-rate for 2015.
They also expect Tesla Motors Inc. (NASDAQ: TSLA) to unveil marked margin expansion, the introduction of the highly anticipated Model X, gigafactory news and new partnerships announcements. The Credit Suisse team sees Tesla with competitive advantages over the competition, as well as the overall electric market eating into the $1 trillion new vehicle market, albeit slowly over time.
The Credit Suisse price target for the electric car giant is a huge $325, and the consensus target is $272.16. Shares closed trading on Wednesday at $218.55.