As we set sail to wrap up the year in the fourth quarter, many of the top Wall Street firms that we cover are making changes to their lists of top stocks to buy for institutional and high net worth customers. With all the major indexes still down year-to-date, it will take a sizable fourth quarter rally just to pull us back to even.
In a new research report, Credit Suisse makes numerous addition and deletions to its Top Picks list, with the analysts at Credit Suisse supplying three top picks each. We screened the list for the top new additions and found four blue chip companies that pay solid dividends that make good sense for investors to consider for the fourth quarter and 2016. They are rated Buy at Credit Suisse.
This big pharmaceutical could have among the most upside potential for investors. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie employs more than 26,000 people worldwide and markets medicines in more than 170 countries
Many on Wall Street, including Credit Suisse, believe that the stock is relatively “cheap” and that AbbVie’s pipeline is under-appreciated as it will be difficult for competitors to make a generic version of its Humira, a drug to treat rheumatoid arthritis and Crohn’s disease. Also with numerous clinical read-outs for the stock over the rest of 2015, some bullish analysts feel the stock could have anywhere from $15 to $25 per share upside from current levels.
AbbVie and partner Roche announced recently that their experimental leukemia candidate, Venetoclax, achieved the primary endpoint overall response rate in a Phase 2 study. Some analysts on Wall Street think that if approved, the drug could capture annual sales of $2 billion by 2020. It works by blocking BCL-2, a protein that prevents self-destruction of defective or cancerous cells in the body.
AbbVie investors are paid a very solid 3.65% dividend. The Credit Suisse price target is $77, and the Thomson/First Call consensus target is much lower at $76.36. The stock closed Friday at $55.82.