Here are 5 favorite stock ideas from UBS — including Citigroup

Published Wed, May 23 20183:14 PM EDT

UBS shared with its clients the firm's best current stock picks. In addition to screening for factors like the potential for gains over the price targets, sector weightings and liquidity, the list focuses on "stocks where we believe our analysts have a truly differentiated view versus consensus," the firm's research group said in a report Tuesday. Here are five buy-rated companies that made the UBS recommended list and their price targets. 1) First Solar (FSLR) UBS analyst Jon Windham has a $94 price target for First Solar shares, representing 34 percent upside to Tuesday's close. "FSLR is our preferred name for exposure to solar module manufacturing. We see the Series 6 module achieving a lower production cost relative to Chinese commodity modules, driving more sustainable earnings growth. FSLR has pursued a conservative strategy of steady growth funded with cash from operations and no debt. FSLR is best positioned to ride out policy driven demand cycles in the U.S." 2) Halliburton (HAL) UBS analyst Angie Sedita has a $75 price target for Halliburton shares, representing 41 percent upside to Tuesday's close. "HAL is one of our top picks in 2018 given 1) its leading position in North America as the low-cost service provider, 2) earnings upside from pricing momentum, cost initiatives and lean cost structure, 3) global scale and earnings leverage in international markets, 4) compelling valuation, and 5) solid free cash flow, as well as a focus on returning capital to shareholders." 3) Acceleron Pharma (XLRN) UBS analyst Carter Gould has a $57 price target for Acceleron Pharma shares, representing 56 percent upside to Tuesday's close. "Acceleron's pivotal luspatercept studies are among the lowest-risk trials across our coverage universe. Coupled with clear regulatory guidance from FDA/EMA, we have strong conviction in approval and late 2019 launch in the US. Indeed, we think luspatercept sales can comfortably exceed $3B. Further, we see meaningful upside on any de-risking data from the broader pipeline (muscle, PAH) as these are sources of value currently outside of our and Street models." 4) Citigroup (C) UBS analyst Saul Martinez has a $80 price target for Citigroup shares, representing 13 percent upside to Tuesday's close. "Citigroup shares have materially underperformed since 3Q17 and current valuations do not adequately capture gradually improving operating performance and continued capital optimization. Citigroup trades at just 1.15x TBV and 9.2x 19E earnings, discounts to all banks we cover." 5) Tableau Software (DATA) UBS analyst Jennifer Lowe has a $114 price target for Tableau Software shares, representing 21 percent upside to Tuesday's close. "We see both Tableau and Microsoft as share gainers vs. legacy incumbents. 2018's product innovations and enhancements, coupled with a revamped sales strategy seasoning under new sales leadership, and reduced buying friction via subscriptions should sustain double-digit topline growth in excess of 8% market growth."

A Citibank branch in Hong Kong.

Vincent Isore | IP3 | Getty Images

UBS shared with its clients the firm's best current stock picks.

In addition to screening for factors like the potential for gains over the price targets, sector weightings and liquidity, the list focuses on "stocks where we believe our analysts have a truly differentiated view versus consensus," the firm's research group said in a report Tuesday.

Here are five buy-rated companies that made the UBS recommended list and their price targets.

1) First Solar (FSLR)

UBS analyst Jon Windham has a $94 price target for First Solar shares, representing 34 percent upside to Tuesday's close.

"FSLR is our preferred name for exposure to solar module manufacturing. We see the Series 6 module achieving a lower production cost relative to Chinese commodity modules, driving more sustainable earnings growth. FSLR has pursued a conservative strategy of steady growth funded with cash from operations and no debt. FSLR is best positioned to ride out policy driven demand cycles in the U.S."