Credit Suisse Focus List Has Catalysts for 30% to 50% Upside Picks

Affiliated Managers

Affiliated Managers Group Inc. (NYSE: AMG) was a top financial stock in the Credit Suisse Focus List. The firm’s Craig Siegenthaler has an Outperform rating on Affiliated Managers and a $212 price target. That was shown to be up 50% from the stated Focus List share price of $141.00, but investors should note that the shares actually were trading last at $147.71.

The upcoming catalysts pointed out by Siegenthaler were seen as follows:

  • Acceleration in net flows in the second half of 2016
  • A pickup in M&A activity during the back half of 2016
  • Earnings accretion from five recent deals expected to fully materialize by the fourth quarter of 2016

Affiliated Managers has a 52-week range of $115.97 to $190.74 and a consensus price target of $192.75.


Hanesbrands Inc. (NYSE: HBI) is rated as Outperform by Credit Suisse’s Christian Buss, along with a $37 price target. That was versus a Focus List share price of $26.16, implying some 41% in potential upside.

Credit Suisse sees an integration of the Pacific Brands acquisition and investments that should further increase e-commerce penetration as upcoming catalysts. An additional positive was seen in the Hanes roll-out of second half product innovation “Fresh IQ technology” to retail as part of their “Innovate-to-Elevate” strategy.

Shares of Hanesbrands have a 52-week range of $23.25 to $33.24. The consensus price target is $34.50.

Twenty-First Century Fox

Twenty-First Century Fox Inc. (NASDAQ: FOXA) was the top media play for upside on Credit Suisse’s Focus List, although it is classified under the Consumer Discretionary category. The firm’s Omar Sheikh has a Outperform rating and a $33 price target. This implied 33% upside to the target price from the stated $24.28 Focus List price. The shares were actually last seen at $25.75.

Catalysts were listed as follows: the launch of Hulu live-streaming service (2017), performance of new content investments at National Geographic and Fx, film box-office performance, and monthly TV network ratings. The firm’s $33 target price is based on a sum of the parts methodology, and the stakes in Sky, Hulu, Shine/Endemol and STAR India separately at a combined $20 billion.

The stock has a 52-week range of $22.66 to $31.40 and a consensus price target of $32.45.

Whole Foods

Whole Foods Market Inc. (NASDAQ: WFM) is rated as Outperform on the Credit Suisse Focus List, with a $40 price target. That is 30% in implied upside from the stated share price of $30.80. Still, Whole Foods was last seen trading at $29.24, so there is more implied upside now.

Credit Suisse’s Edward Kelly’s only catalyst listed in the Focus List review was upcoming earnings, which might bring at least some pause from investors. After all, earnings trends for Whole Foods, organic and natural foods players and grocery stores in general have not been so positive as investors were used to seeing for years.

Shares of Whole Foods have a 52-week range of $28.07 to $35.58 and a consensus price target of $31.10. Whole Foods may be the king of organic and natural grocers, but its market cap has come back down under $10 billion again.

Again, these views are those Credit Suisse. Whether or not these catalysts come about remains to be seen. Again, there are no free lunches on Wall Street. The following chart montage (expandable) is from




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