After a strong market performance in July, August starts slowly and the question arises of where investors can invest money to grow faster. A major brokerage firm has found some names that offer a solid upside despite the current headwinds in the market.
Credit Suisse has made a few calls in several sectors where it sees a significant rally. Considering the current inflationary climate, finding an upside is key to keeping pace with the recovery from market lows this summer.
It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.
Credit Suisse reiterated an Outperform rating on AmerisourceBergen Corp. (NYSE: ABC), but cut the $ 180 price target to $ 175, which implies a 26% increase from the most recent closing price of $ 139 .00.
AJ Rice was the lead analyst on this call and highlighted in the report that the company has seen an outperformance of sales growth in the US healthcare segment, partly driven by a mail order customer who had a contract, which has increased market share and drove the volume of the company’s mail order orders. That said, mail order margins are below average, but the force drives dollar profits and cash flow, Rice added. With regard to
Paxlovid, the company indicated that the benefit of this relatively new therapy was not fully seen in the quarter, but an increase in access and use would be positive.
The stock has a 52-week trading range of $ 113.68 to $ 167.19 and was trading close to $ 139 per share on Friday. The stock has actually risen nearly 5% since the start of the year.
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Although Credit Suisse reiterated an Outperform rating on Booking Holdings Inc. (NASDAQ: BKNG), it reduced the price target of $ 2,985 per share to $ 2,650. This implies a 35% increase from the most recent closing price of $ 1,966.48.
Stephen Ju was the lead analyst on the call and noted that Booking has shown the first full quarter of growth in 2019 since the start of the pandemic. However, his long-term estimates decline as Ju accounts for headwinds of exchange rates and assumes growth from the low base of 2023.
The stock traded at around $ 1,936 early Friday, in a 52-week range of $ 1,669.34 to $ 2,715.66. Shares have fallen by around 19% since the start of the year.
On Ceridian HCM Holding Inc. (NYSE: CDAY), Credit Suisse reiterated an Outperform rating and raised the target price to $ 75 from $ 70. The implied upside from the most recent closing price of $ 58.78 is 28%.
Kevin McVeigh, lead analyst of the call, expects Ceridian to build on its recent momentum after an “impressive” second quarter revenue and an EBITDA beat driven by continued strong customer demand, revenue per customer. The stock offers investors an undervalued payment opportunity, exclusive strength given its differentiated product offering and a unique international M&A playbook, McVeigh concludes.
The stock traded around $ 66 on Friday, spanning a 52-week range of $ 43.23 to $ 130.37. Shares have fallen 38% since the beginning of the year.
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