As the last quarter of the year begins, many prestigious banks are updating their recommendations for the best stocks to buy by the end of the year, a year that Credit Suisse bank has complied with. in a note published earlier this month. In this article, you will find the complete list of actions recommended for purchase by Credit Suisse bank.
“For the fourth quarter of 2021, our stock selection is primarily focused on companies with high operational quality, attractive valuations and strong momentum,” the bank said. Credit Suisse’s selection this quarter includes 7 stocks that the Swiss bank qualifies as “best-in-class”.
French asset manager Amundi, Europe’s largest, is also on the list. The bank says Amundi has “one of the highest operating margins” among its peers and a 5.2% dividend yield, the best in the industry. Credit Suisse believes that the title presents a upside potential of 24%.
Software and technology solutions provider SAP has won the bank’s favor due to its stable returns over the past two years. It also welcomes the evolution of its business model from licensing to cloud and web-based software products, including its “holistic offering for cloud-based business transformation”. Credit Suisse believes that the action has a upside potential of 34%.
Integrated oil and gas company OMV is the only player in the energy sector to be recommended for purchase by CS, not least because the stock posted the second best performance among its peers in 2020. The bank appreciates also the company for its low leverage compared to its European peers, as well as for its ability to meet its commitments and capital allocation decisions. Analysts believe the stock could increase by 15% in the medium term.
Legal & General Action
Credit Suisse considers Legal & General to be a “top UK pension fund”, with analysts citing the company’s track record of “high and stable returns of 15% before the pandemic”. Analysts add that the share is expected to achieve 8% annual growth through 2025.
In industry, CS analysts chose technology group Andritz, which “recorded a performance of 26.4% in the past six months, surpassing that of its European counterparts by almost 20%”. Nevertheless, “the momentum remains strong”, according to analysts who assess the upside potential of + 20%.
Swiss technology group Bucher is another industrial value advised for purchase by the bank for the last quarter. Analysts call it “best-in-class,” with “strong principles of wealth creation throughout its history” and a history of “growth with increasing returns during phases of cyclical upswing.” The stock has a potential upside of 25%, analysts said.
Finally, the Belgian real estate developer VGP is appreciated by Credit Suisse because it has “one of the strongest dynamic profiles in European real estate”, as well as a solid development pipeline with 42 sites under development. . In addition to the growth of its land bank, the company also benefits from strong pre-lease commitments, according to analysts, who estimate the potential for an increase at + 15%.