$COMM, $ESPR, $HAL, $LRCX
Below is a list of stock that Credit Suisse analysts have singled out that have a 50% implied upside in here, as follows:
CommScope Inc. (NASDAQ:COMM) has gone the wrong way since Credit Suisse 1st gave large upside targets here. In May, the firm took the target price down to 30 from 34, but that is still its top target. That said, shares currently trade near 16, which implies 85% upside. The consensus analyst target is at 26.
After adjusting for weakness from CommScope’s Arris acquisition, Credit Suisse’s Sami Badri and Michael Westendorf believe that a recovery in the 2-H of Y 2019 is a Key focus point and that technology tailwinds remain in place for Y 2020. The team also sees margin downside as unlikely and that reducing post-merger leverage will help the company ahead.
Esperion Therapeutics Inc. (NASDAQ:ESPR) currently trades at 46.75, and the Credit Suisse target price of 90 from Auster gives an implied upside of 92%. The consensus target price is about 89, and the market cap is $1.3-B
Credit Suisse believes the FDA’s decision to accept the bempedoic acid new drug application and to not hold an AdCom de-risks the regulatory cycle for the product. Management has continued to take steps to better capitalize the company to allow for the best possible drug launch.
Halliburton Co. (NYSE: HAL) is a leader in Oil & Gas services, and Credit Suisse’s Jacob Lundberg has a 33 price target. Credit Suisse’s reference price was 21.19, but Halliburton shares were last seen trading at 22.50. That still implies upside of close to 47%, before considering its 3% dividend yield.
Halliburton is a huge player that needs no introduction, but Mr. Lundberg sees it now as a much more focused company targeting the highest possible returns due to a reliance on shale and shorter cycle developments. That 33 target is also based on just 9X the firm’s Y 2020 earnings before interest, tax, depreciation and amortization (EBITDA) estimate. The 33 target may even be conservative, if you consider the consensus target price is at 36.23.
Lam Research Corp. (NASDAQ:LRCX) has been volatile, but Credit Suisse remains positive on this well-known semiconductor and circuit capex stock. Credit Suisse sees Lam as well positioned to benefit from a recovery in memory capital spending and noted a compelling valuation at less than 12X expected earnings.
Credit Suisse’s John Pitzer has a 278 price target on Lam Research, implying 50% upside from the current 185 price, not considering its 2% dividend yield. The consensus target price is down at about 217.50 and also that Pitzer actually has the highest official sell-side analyst’s research price target in the Refinitiv universe.
Have a terrific week