Combining a very strong presence in Las Vegas and growing clout in Macau, MGM Resorts International (NYSE: MGM) is poised to perhaps break out after years of so-so trading. While still burdened with high debt, at least some of that debt has been refinanced at lower levels.
Goldman Sachs and other Wall Street analysts find MGM to have among the most favorable risk-reward, given the combination of exposure to improving trends on the Las Vegas Strip and the continuing growth in the mass market segment in Macau in the near-term, as well as steady balance sheet improvements and its development pipeline in the medium term. While the Macau business fell off dramatically in the last half of 2014, MGM is not as dependent on it for overall revenue. The new Casino in Cotai could open as soon as this time next year.
Credit Suisse has a $30 price target, and the consensus target is $26.95. Shares closed Wednesday at $19.87.
This global life sciences company is focused on the discovery, development and commercialization of new fertility treatments. The company’s patented technology is based on the discovery of egg precursor cells, which are found in the ovaries. It is developing various fertility treatment options designed to enhance egg quality and in vitro fertilization (IVF) comprising AUGMENT to improve egg quality and increase the success of IVF. The Credit Suisse team sees OvaScience Inc. (NASDAQ: OVAS) as a huge binary possibility, and if any of the company’s products succeed, the upside for the stock could be huge.
The Credit Suisse price target is a very large $70, and then consensus is posted at $59.86. The stock closed at $41.95 a share.
Southwest Airlines Co. (NYSE: LUV) is a top transportation stock that makes the Credit Suisse list. With the domestic market showing good strength, and the pricing environment looking very solid for 2015, revenues should stay strong and continue to grow. Tumbling jet fuel prices, which is almost 30% of Southwest’s total costs, have been a key for improving revenues and earnings. With almost no international business at this time, currency headwinds are not an issue for the airline, which Credit Suisse views as the preferred U.S. play for pricing stability.
Southwest investors receive a small 0.6% dividend. Credit Suisse has a huge $62 price objective, while the consensus price target is $55.56. The stock closed Wednesday at $44.64.
One of the top cleantech picks at Credit Suisse, SunEdison Inc. (NYSE: SUNE) is widely recommend around other Wall Street firms as well. The company manufactures solar technology and develops, finances, installs and operates distributed solar power plants, delivering predictably priced electricity and services to its residential, commercial, government and utility customers.
SunEdison also provides 24/7 asset management, monitoring and reporting services for hundreds of solar systems worldwide via the company’s Renewable Operation Center. SunEdison and its yieldco company, TerraForm Power, signed a definitive agreement in November to acquire First Wind for a total sum of $2.4 billion. The combined entity becomes one of the largest clean energy companies in the world. The analysts feel that the cash generation potential of SunEdison due to the multitude of positive corporate moves is becoming increasingly clear and could enable realization of their sum-of-the-parts-based value of $34 share.
The Credit Suisse price target is set at the aforementioned $34. The consensus target is $28.08, and the stock closed Wednesday at $20.02.
As advertised, a good sample of the stocks on the Credit Suisse list, and an eclectic group for sure. These are all reasonably aggressive stock ideas and really only suitable for aggressive growth portfolios.
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