Investing

8 Top Picks From Credit Suisse With Implied Upside of 50% or More

MetLife

MetLife Inc. (NYSE: MET) has a price target of $67 at Credit Suisse, implying upside of 52% from the $43.85 share price. It has a consensus price target of $53.82 and a 52-week range of $43.09 to $55.91. Year to date, the stock is down nearly 13%.

The Credit Suisse view is that MetLife has a relatively high degree of control over its future success, when considering its strong retirement and group benefits, as well as its international businesses. These are all said to have a low sensitivity to equity market fluctuations. It also has divested its variable annuities business, which will allow large one-time charges seen in recent years to ease.

Micron Technology

Micron Technology Inc. (NASDAQ: MU) has a price target of $90 at Credit Suisse, implying upside of 61% from the $55.74 reference price. The consensus price target is $80.93. The 52-week range is $26.85 to $64.66. The stock is up about 32% year to date.

Micron’s memory business is still viewed as cyclical, but Credit Suisse sees the current environment as more sustainable. The company has China exposure concerns but there are many areas for Micron to still find growth in newer segments emerging in technology under new leadership.

Switch

Switch Inc. (NYSE: SWCH) was last seen with a $19 Credit Suisse price target, which implies some 52% upside from its reference price of $12.50. It has a consensus price target of $17.00 and a 52-week range of $11.85 to $24.90. Year to date, the stock is down 31%.

Credit Suisse sees Switch growing its revenues at roughly twice that of the data center market, and 2019 revenue is expected to accelerate to about 21% growth after completing its four data center campuses. Switch is said to offer immense power at cheaper rates and its facilities are strategically located to provide additional cost savings to customers.

U.S. Steel

United States Steel Corp. (NYSE: X) is an obvious trade war and tariff stock, due to its steel exposure, and Credit Suisse’s $55 price target implies just over 50% upside from the reference price of $36.53. U.S. Steel has a consensus price target of $45.69. The 52-week range is $22.38 to $47.64. Year to date, the stock is up 3%. Credit Suisse’s summary said:

The US flat rolled market is expected to remain very tight, as a) seasonal demand is accelerating, b) scrap prices remain robust, and c) S/D fundamentals benefit from limited imports and a strong US/global economy. We like X for its strong leverage to the cycle, accretion from its “A” and “B” Granite City BF restarts, and potential asset sales as the company refocuses on its core steelmaking operations.

Azure Power

Azure Power Global Ltd. (NYSE: AZRE) has been listed last as it is a small cap stock, with a $335 million market cap, in the alternative energy area in Credit Suisse. Many investors may not even know about this company. This stock has a $24 price target, which was 65% higher than the $14.50 reference price. Azure Power has a consensus price target of $23.00, and the 52-week range is $12.53 to $18.10. Year to date, the stock is up 3%. Credit Suisse’s summary on Azure said:

Long-term value creation driven by attractive project economics, visible contracted and funded growth (2.1GW contracted), differentiated in-house EPC, and strong policy support in India for growth. Stock trades below DCF of long-term contracted cash flows with low counterparty credit risk.