JPMorgan's top stock picks for the second half

Published Wed, Jul 1 201512:55 PM EDT

In a note to clients Wednesday, JPMorgan equity research issued a list of stocks the firm believes could provide excess returns in the second half of the year. Each month, the investment bank asks its equity analysts for one to three of their top picks that fit a variety of strategies such as near term, growth and value, among others. Here are some of their top picks. What makes the list unique from the rest of their research is that it's tailored to selected investment themes, according Nicholas Rosato Jr., head of North America equity research at the firm. In the near term, for example, analysts at the firm are bullish on Citigroup , rating the stock overweight with a target price of $59 by the end of the year, implying a 7 percent gain from here. Some of the catalysts for Citigroup to move higher, based on their research, are an increase in capital ratios, rising capital returns and further improvement in efficiency ratios over the next six months. Read More 90% chance the Dow rebounds in July Among the more bullish calls, the firm recommends going long Bluebird Bio , a biotechnology company. In the past 12 months, shares of ticker BLUE are up more than 300 percent, on the back of positive data from one of its key clinical programs ( LentiGlobin in B-thal and especially SCD ). Ahead of a medical meeting for the company in December, analysts predict the stock could rally 45 percent from here to $244. Shares of Dynavax , a biotech company, and Solera Holdings , a software provider, are also expected to rally in the next half of the year, with both stocks potentially up more than 50 percent, the firm predicts. Other picks for the short-term strategy include Disney , Penn National , SunTrust Banks and Tractor Supply , albeit the gains are expected to be within 10 percent from here. For a growth strategy , the firm has a bullish stance on names such as American Airlines , LinkedIn and CBS , predicting gains greater than 30 percent by year-end. Similarly, for a value investing approach, JPMorgan analysts project shares of General Motors , Viacom and Allergan will be up at least 20 percent. To be sure, JPMorgan's analyst focus list is not a model portfolio, but rather stock recommendations based on different investment themes.

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Lucas Jackson | Reuters

In a note to clients Wednesday, JPMorgan equity research issued a list of stocks the firm believes could provide excess returns in the second half of the year.

Each month, the investment bank asks its equity analysts for one to three of their top picks that fit a variety of strategies such as near term, growth and value, among others.

Here are some of their top picks.