The major Swiss bank UBS has put forward a list of shares it believes are attractively priced and have the strength to withstand an uneven macroeconomic situation, reports CNBC.
One of the stocks that the Swiss are too cheap to ignore is Dell. The stock is UBS analyst David Vogt’s top pick for 2024, and even though the stock has doubled over the past year, he believes it still has a lot going for it.
Vogt writes in an update that he likes “companies with idiosyncratic opportunities at reasonable valuations,” and thinks Dell is among them. He believes that Dell has several weapons in its arsenal that can help lift the stock in the future, with the help of, among other things, buybacks and improved end markets.
“In other words, we believe that Dell shares offer the best combination of self-supporting initiatives, a cyclical recovery in both end markets, underpriced AI upside towards 2025 at a reasonable valuation,” writes Vogt.
Expect greater sales and profits
Another company being singled out is Target.
“For Target, we estimate that sales and profits will increase this year,” says analyst Michael Lasser.
Lasser believes Target stands out in an environment that is likely to be rough.
“We believe it offers opportunities for sales to recover faster than expected, margins to scale higher than expected, or share buybacks to be larger than expected,” writes the analyst in an update.
GM and mining company
UBS also points to General Motors, which it believes is underpriced, and in addition to Teck Resources and CrowdStrike – which it believes is one of the best-positioned stocks in cyber security.
“CrowdStrike should benefit from the fact that PC shipments are expected to grow by 5 percent again,” writes UBS about the computer security company.
While the Canadian metal and mining company Teck Resources, the Swiss also see great opportunities and believe the company has a convincing growth picture for copper in the medium term, which is both capital efficient and has relatively low geopolitical risk.
2024-01-21 09:19:41
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