Credit Suisse: Here are 16 stocks with upside 'looming' this year

Published Wed, Feb 2 202210:00 PM EST

Credit Suisse picked stocks from across the United States, Europe and Asia it predicts will take off thanks to particular "inflection points" in 2022. There are 16 of those names that the Swiss lender forecasts will gain significantly compared with current market consensus. "We have focused on those stocks where there is an identifiable inflection point or catalyst looming in 2022 to either provide another leg to existing momentum or signal a turning point," the bank said in a research note dated Jan. 28, noting that it attempted to steer clear of interest rate policy and inflation debates in its decision making. In Europe, Credit Suisse sees significant growth above consensus for U.K.-based investment firm Abrdn , targeting its current stock price of around £242 ($327) to reach £290. Abrdn's inflection point? Completing the acquisition of retail investment platform Interactive Investor for £1.5 billion toward the end of the first half of 2022, as well as selling the last of its stake in India-based insurance company HDFC Life, which the bank believes "would cause the underlying fund flow momentum and revenue growth outlook to improve." Credit Suisse also picked out Delivery Hero , predicting the German food delivery service's stock to more than double from around 70 euros ($79) per share to 171 euros per share, putting its forecast way above consensus. "The shift in focus towards profitability, alongside guidance to Quick Commerce losses peaking in 1Q22, would help the stock transition from a concept stock to a more accessible high-growth internet stock," the bank wrote. Heineken also got a mention and an above-consensus forecast, with Credit Suisse giving it a target price of 130 euros from its current price of 97 euros a share. "We expect the inflated commodity cost cycle to roll over, as price/mix beats continue during the Q1 earnings season," the bank wrote. Other European names that got particularly bright forecasts from Credit Suisse included U.K. bank Lloyds , airline EasyJet , Swedish engineering firm Sandvik and Swiss chemical company Sika . For Asia, the Swiss lender named stocks in the beverage, energy, technology and manufacturing industries, among others. They include China Resources Beer , Chinese national oil company CNOOC , industrial automation components company Inovance Technology , solar power developer Longi Green Technology , semiconductor manufacturer Will Semi, Thailand's Siam Commercial Bank and Japan's Murata Manufacturing . Credit Suisse's analysts see China's Longi Green Technology boosted by "a meaningful solar demand recovery … after the Chinese New Year (early Feb-2022), to be supported by increasing polysilicon supplies and further module price cuts." And in the Americas, the bank points out Dun & Bradstreet Holdings , Humana and ZoomInfo Technologies . It sees data and analytics company Dun & Bradstreet benefiting from "accelerating organic growth coupled with a return to margin expansion in 2022," which it thinks will "help drive a multi-year multiple rerating story." It gives the firm's stock price a target of $35 from its current price of $20. American for-profit health insurance company Humana also got an above-average target forecast from Credit Suisse, which sees its stock price reaching $540 from its current level of $392, assuming that the government's Centers for Medicare & Medicaid Services releases higher rates for Medicare Advantage insurance plans. ZoomInfo Technologies is also set for significant gains in Credit Suisse's outlook, which targets a stock price of $100 per share up from its current $52 per share. "ZI is in the early stages of leveraging its best-in-class data moat to develop a comprehensive go-to-market platform that combines robust data management, orchestration, and engagement," the bank wrote.

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Credit Suisse picked stocks from across the United States, Europe and Asia it predicts will take off thanks to particular "inflection points" in 2022.