6 stocks from Deutsche Bank due for Brexit bounce

Published Mon, Jun 27 20162:27 PM EDT

With markets tumbling since the Brexit vote, Deutsche Bank analysts see opportunity as several of the firm's buy-rated names may be overreacting to the downside. "Brexit uncertainty may temper consumer demand in the U.K. and Europe. For our names, 'containment' to the U.K. would be manageable we believe, though the risks of 'contagion' to other European 'exits' and a weakening euro are on the table," Deutsche Bank's Dave Weiner wrote in a note to clients Sunday. "Adding balance, FX changes could help tourism within U.K./Europe and offer further sourcing tail winds. As for stocks, we continue to like the LT prospects of all our buy-rated names," he said. Here are six stocks Deutsche Bank analysts recommended to buy on the Brexit pullback. "We continue to believe that PVH and KORS are well-positioned relative to their guidance, at attractive valuations. With regard to their U.K. exposure, though both companies have a presence, actual P & L downside should be relatively limited at this point." — Dave Weiner. Weiner has a $110 price target on PVH representing 18 percent upside from Friday's close. He has a $56 price target on Michael Kors , which is 18 percent higher than Friday's close. "Within the athletic space, we like the reality that UA is earlier along the global growth curve and that they relatively recently preannounced both 2Q/FY revs. and EBIT results." — Dave Weiner. The analyst has a $53 price target on Under Armour representing 42 percent upside from Friday's close. "Given that the U.K. market for 2016 represents 6.3 percent of American's capacity, 5.4 percent of United's and 2.8 percent of Delta's (6.7 percent if you give DAL credit for half of Virgin Atlantic's U.S. – U.K. capacity), we see potential downside EPS risk, and therefore, maintain our Hold ratings on the shares of the Big 3. We continue to favor domestic names such as LUV, SAVE and JBLU which should gain from a favorable leisure/discretionary travel outlook." — Michael Linenberg. Linenberg's price targets on JetBlue , Southwest and Spirit are $31, $57 and $57, respectively. They represent upside of 101 percent, 49 percent and 35 percent from Friday's close.

An aircraft marshaller guides a JetBlue Airways aircraft at the Long Beach, California, airport.

Patrick T. Fallon | Bloomberg | Getty Images

With markets tumbling since the Brexit vote, Deutsche Bank analysts see opportunity as several of the firm's buy-rated names may be overreacting to the downside.

"Brexit uncertainty may temper consumer demand in the U.K. and Europe. For our names, 'containment' to the U.K. would be manageable we believe, though the risks of 'contagion' to other European 'exits' and a weakening euro are on the table," Deutsche Bank's Dave Weiner wrote in a note to clients Sunday.

"Adding balance, FX changes could help tourism within U.K./Europe and offer further sourcing tail winds. As for stocks, we continue to like the LT prospects of all our buy-rated names," he said.

Here are six stocks Deutsche Bank analysts recommended to buy on the Brexit pullback.