2018 has been a strange time for investors. While the U.S. stock market sits close to all-time highs, many of the emerging and other developed markets nations have seen their shares take a beating. Wall Street analysts have made numerous calls signaling that there now may be more upside and opportunities in some larger international companies.
24/7 Wall St. reviews dozens of analyst research reports each day of the week. The goal is simple enough: looking for new investing and trading ideas for investors and traders alike. It turns out the that September has seen many of the large and actively traded foreign stocks getting very positive analyst coverage for their New York-listed American depositary shares (ADSs).
Traditional analyst calls with Buy and Outperform ratings come with a total return prediction of 8% to 10% at this stage in the bull market. There may be more upside projected in some of these calls, but international stocks have the currency and international risks to consider, and we are in a time when international trading faces tariffs in the United States and other regulatory risks outside of it.
Additional commentary has been added on some of these analyst reports, along with trading history. Any consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.
ABB Ltd. (NYSE: ABB) was raised to Buy from Neutral at Citigroup on September 4. ABB’s ADSs were last seen trading at $23.40, in a 52-week range of $21.22 to $28.67. The listed consensus target price is $23.18 per ADS. The ADSs were down 13% so far in 2018.
While the industrial player is seen as having value, there was also positive commentary in the report about a return to growth for ABB on top of its 3.4% dividend yield. CFRA (S&P) also reiterated its Buy rating on ABB with a $27 target price on September 8, noting that it sees a positive long-term demand outlook driven by the energy and the so-called fourth industrial revolution.
BP PLC (NYSE: BP) was raised to Overweight from Equal Weight by Morgan Stanley on September 5. Its ADSs closed down almost 0.4% at $42.72 ahead of the call, and it was last seen trading at $42.30. BP’s 52-week trading range is $34.78 to $47.83 and its consensus target price was $49.08, and of course BP still has that monster dividend yield of about 5.8% in current terms.
Morgan Stanley feels that the shares are undervalued in comparison to its peers, and there is also the pending $10.5 billion or so acquisition of U.S. shale assets from BHP Billiton that is set to increase longer-term land-based income for BP. BP’s New York-listed shares were last seen with a flat performance in 2018.
Coca-Cola European Partners
Coca-Cola European Partners PLC (NYSE: CCE) was raised to Outperform and the price target was raised to $48 from $43 at Macquarie on September 4. It was given more upside based on improved Avon fundamentals plus a coming catalyst either from M&A opportunities or from special dividends.
The ADSs were last seen trading at $43.00, in a 52-week range of $36.17 to $43.13 and with a consensus target price last seen at roughly $44.00. The U.K.-based beverage maker serves roughly 300 million customers across Western Europe. Its ADSs were last seen up about 7% so far in 2018.