After a strong performance in the markets in July, August is off to a slow start, raising the question of where investors can put money to grow the fastest. A major brokerage found a few names that offer solid upside despite the current market headwinds.
Credit Suisse made several calls across multiple industries where it sees significant growth. Given the current inflationary climate, finding upside is key to keeping pace with the market’s recovery from this summer’s dips.
It is important to remember that no analyst report should be used as the sole basis for a buy or sell decision.
Credit Suisse reiterated AmerisourceBergen Corp.’s outperform rating. (NYSE: ABC ) but cut its price target from $180 to $175, suggesting a 26% upside from its last close of $139.00.
AJ Rice was the lead analyst on that call, and in the report, he highlighted that the company has seen ahead of sales growth in the US healthcare segment, driven in part by a mail-order customer that has a contract, which is increasing market share and drive business mail order volume. However, mail order margins are lower than average, but the strength is driving profit dollars and cash flow, Rice added. Regarding
Paxlovid, the company indicated that the benefit of this relatively new therapy was not fully seen in the quarter, but the increase in access and use will be positive.
The stock has a 52-week trading range of $113.68 to $167.19 and was trading near $139 a share on Friday. The stock is actually up nearly 5% year to date.
Although Credit Suisse reiterated its outperform rating on Booking Holdings Inc. (NASDAQ: BKNG ), it cut its target price from $2,985 per share to $2,650. This suggests a 35% upside from the last closing price of $1,966.48.
Stephen Zhu was the lead analyst on the call and noted that Booking posted the first full quarter of growth in 2019 since the start of the pandemic. Nevertheless, his longer-term forecasts are downgraded as Zhu factors in foreign currency headwinds and assumes growth from a lowered base for 2023.
Shares were trading around $1,936 early Friday, in a 52-week range of $1,669.34 to $2,715.66. Shares are down roughly 19% year to date.
About Ceridian HCM Holding Inc. (NYSE: CDAY ), Credit Suisse reiterated its outperform rating and raised its price target to $75 from $70. The implied upside from the last close of $58.78 is 28%.
Kevin McVeigh, lead analyst on the call, expects Ceridian to build on recent momentum following “impressive” second-quarter revenue and EBITDA driven by continued strong customer demand, revenue per customer. The stock offers investors an undervalued payout opportunity, a prestige market given its differentiated product offering and a unique international M&A book, McVeigh concludes.
Shares traded around $66 on Friday, in a 52-week range of $43.23 to $130.37. Shares are down 38% year to date.
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