Here are Credit Suisse's top new stock ideas for May

Published Wed, May 5 20219:43 AM EDTUpdated Wed, May 5 202110:42 AM EDT

Credit Suisse is out with its latest "top picks" list, which highlights the firm's most preferred outperform-rated names across sectors. The firm bills the list as a "one-stop shop" for the brokerage's best ideas. Each analyst gives their top pick with a six- to 12-month timeframe in mind. Chipotle , Advance Auto Parts , American Express and Teladoc Health are among the names on the list. There are also three new No. 1 outperform ideas. Here are the names, and the firm's target on each stock: Peloton (PT) Credit Suisse likes Peloton , noting that it has company specific and sector tailwinds behind it. The company operates in a large and growing total addressable market, while having a strong innovation pipeline with geographic expansion opportunities, according to the firm. Peloton has come under pressure recently due to safety concerns , but Credit Suisse doesn't believe this will affect the company's future growth outlook. The firm has a $164 target on the stock, implying a 70% upside from Tuesday's close. Analyst Kaumil Gajrawala writes: "Industry megatrends (increased demand for exercise, class workouts, and fitness tech), accelerated by the pandemic, support subscriber growth. New product release (lower-priced treadmill), entry into new markets (AUS), and content/software enhancements expand the addressable market, increase brand awareness, and limit churn." Ralph Lauren (RL) Ralph Lauren is another new addition to Credit Suisse's top stock list. The firm pointed to a recovery in apparel combined with Ralph Lauren's cost savings during the pandemic as fuel that should push the stock higher. Analyst Michael Binetti sees the stock rallying 11% from Tuesday's close to $150 per share. He writes: "We think RL's primary medium/longer-term initiatives (digital content creation, personalized engagement, reducing excessive markdowns, accelerating customer growth, and even developing a more complete long-term US distribution strategy) are starting to work better than expected." Devon Energy (DVN) Devon Energy is Credit Suisse's new top idea within the energy and utilities sector. The firm said the exploration and production company offers an above-average free cashflow yield relative to peers, as well as much better visibility when it comes to returning cash to shareholders. The firm has a $30 price target on the stock, suggesting a 28% jump from Tuesday's closing price. Analyst Bill Janela writes: "We view DVN as a consolidator and expect it will continue to pursue acquisition opportunities as a way to increase scale, lower its breakeven WTI price and enhance its ability to return excess cash to shareholders. While this introduces some M & A headline risk, we think DVN will remain a selective buyer and expect any potential deal would need to be accretive to FCF per share (and thus boost the variable payout to investors) and neutral/accretive to leverage." —CNBC's Michael Bloom contributed reporting.

Exercise equipment and apparel for sale at the Peloton Interactive Inc. showroom in Dedham, Massachusetts, U.S., on Wednesday, Feb. 3, 2021.

Adam Glanzman | Bloomberg | Getty Images

Credit Suisse is out with its latest "top picks" list, which highlights the firm's most preferred outperform-rated names across sectors.

The firm bills the list as a "one-stop shop" for the brokerage's best ideas. Each analyst gives their top pick with a six- to 12-month timeframe in mind.

Chipotle, Advance Auto Parts, American Express and Teladoc Health are among the names on the list.

There are also three new No. 1 outperform ideas. Here are the names, and the firm's target on each stock: