Investing

Credit Suisse Has 8 Top Stock Picks With at Least 50% Implied Upside

Facebook

Facebook Inc. (NASDAQ: FB) is actually on this list, but investors should know that this is only the case because of the privacy woes and pullback in the stock price. The social media giant was given an implied upside of almost 55% to the $240 price target. Also consider that analysts have been slow to lower price targets despite the pullback.

The Credit Suisse call sees continued long-term revenue growth, an underestimated monetization potential of upcoming new products and more products contributing to the mix.

Ending the week at $157.20 a share, Facebook has a 52-week trading range of $137.60 to $195.32. The consensus target price is $218.22, so Credit Suisse’s street-high $240 price target is roughly 10% above average.

Incyte

Incyte Corp. (NASDAQ: INCY) was represented as having upside above 70% to the $145 price target. Credit Suisse sees its risk/reward into the epacadostat melanoma readout as still positive, and it sees a 75% probability of success.

Another driver is that Incyte’s pipeline is considered to be robust and underappreciated, and a successful epacadostat readout could allow credit to be given to other epacadostat trials if successful. That said, Incyte has close to an $18 billion market cap.

Trading at $64.02 as Friday’s session came to a close, Incyte has a 52-week range of $63.81 to $144.32 and a consensus target price of $141.59. The $145 target from Credit Suisse is far shy of the street-high target of $175.

Select Energy Services

Select Energy Services Inc. (NYSE: WTTR) came with an implied upside of 72% to the Credit Suisse target of $21. This full-service water company helps unconventional wells be able to help companies capture value from water into wells and from extraction. Credit Suisse estimates that Select Energy’s market share is 7% to 10%, and it is the biggest in the industry, though it already has implemented a consolidation strategy.

Shares were last seen at $12.25, in a 52-week range of $11.22 to $21.96 and with a consensus target price of $19.14. Credit Suisse’s $21 target is still well under the street-high target of $24.00.

Switch

Switch Inc. (NYSE: SWCH) was given an implied upside of 57% to the $22 Credit Suisse price target. With the $3.5 billion market value, Credit Suisse sees Switch offering immense power at cheaper rates at its SUPERNAP data center facilities. The firm also sees its facilities as strategically located to provide additional cost savings.

Trading at $14.64 late on Friday’s close, Switch has a 52-week range of $13.10 to $24.90. The consensus target price is $17.95, and Credit Suisse has the highest analyst target on Switch at $22.

U.S. Steel

United States Steel Corp. (NYSE: X) has a $55 price target at Credit Suisse, representing upside of 57% from the $35.00 level at the time. The firm noted that the U.S. flat-rolled market is firing on all cylinders and sees supply and demand fundamentals benefiting from limited imports and strong U.S. and global economies.

Credit Suisse also likes U.S. Steel’s strong leverage to the cycle, accretion from its Granite City restart and likely assets as ongoing catalysts. That said, the focus list reports did not address how the company will fare under trade war fears.

U.S. Steel closed Friday’s trading down 5.8% at $34.49 on trade concerns. It has a 52-week range of $18.55 to $47.64 and a consensus target price of $48.71. Credit Suisse’s $55 target may be above average, but the street-high target is more than $60.