The Australian market has rallied nearly 10 percent off its bear-market low in February, but the gains are just getting started, Credit Suisse said.
The market down under is seeing its traditional "gummy bear" rally, which generally follows its dips into benign bear markets, the bank said in a note Tuesday, referring to a popular sticky candy. That type of rally typically sees the index climb an average of 24 percent over the following 12 months, Credit Suisse said.
But historical comparisons aren't the only reason the bank is staying positive on the market despite few expectations for a strong recovery in the long-downtrodden prices of Australia's key commodity exports.
For one, Australia's stocks still look cheap based on dividend yields, with the trailing ASX 200 yield at just under 5 percent, compared with the long-term average of around 4 percent, Credit Suisse said.