3 New Investment Ideas From Credit Suisse With Over 25% Upside – 24/7 Wall St.

After a strong showing from the markets in July, August is off to a slow start and begs the question of where investors can invest to grow faster. A major brokerage house has found some names that offer upside despite the current market headwinds.

Credit Suisse has issued 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 lows.

It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.

AmerisourceBergen

Credit Suisse reiterated an outperform rating on AmerisourceBergen Corp. (NYSE: ABC ), but lowered its price target from $180 to $175, which implies a 26% upside from its most recent closing price of $139.00.

AJ Rice was the lead analyst on the call, and in the report he noted that the company saw better sales growth in the US Healthcare segment, which was driven in part by a mail-order customer that had a contract, which increased market share and boosted the company’s mail order volume. That said, mail order margins are lower than average, but the strength drives earning 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 increased access and use would be positive.

The stock has a 52-week trading range of $113.68 to $167.19 and traded near $139 a share on Friday. The stock is actually up about 5% year-to-date.

ALSO READ: Yields are falling lower every day: 7 blue chips that pay 6% or bigger dividends

RESERVATION

Although Credit Suisse reiterated an outperform rating on Booking Holdings Inc. (NASDAQ: BKNG ), it lowered its price target from $2,985 per share to $2,650. This represents a 35% increase from the most recent closing price of $1,966.48.

Stephen Ju was the lead analyst on the call, and he noted that Booking showed its first full quarter of growth in 2019 since the start of the pandemic. However, its long-term estimates pull back as Ju factors in foreign exchange headwinds and assumes growth from a lowered 2023 base.

Shares were trading at about $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.

Ceridian

In Ceridian HCM Holding Inc. (NYSE: CDAY ), Credit Suisse reiterated an outperform rating and raised its price target to $75 from $70. The implied upside from the most recent closing price of $58.78 is 28%.

Kevin McVeigh, lead analyst on the call, expects Ceridian to build on its bottom line momentum after “impressive” second-quarter revenue and EBITDA momentum driven by continued strong customer demand, revenue per customer. The stock offers investors an undervalued payout opportunity, market strength given its differentiated product offering and unique international M&A book, concludes McVeigh.

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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