Credit Suisse Presents Its Homebuilding Stock 'Shopping List'

Britain's departure from the European Union is likely to have far reaching economic implications worldwide. However, analysts at Credit Suisse don't believe U.S. Home Building will be one of them.

"We currently don't anticipate broad negative impacts for US housing post-Brexit, especially given that rates are now likely to remain low for longer, supporting housing, but risks could rise if economic fallout spreads," said the Swiss Bank.

Housing fundamentals remain strong, according to the bank, and the recent selloff could be a solid buying opportunity for the long term.

Credit Suisse released its Home Building Stock "Shopping List" this week. Among those included in the list are CalAtlantic Group Inc CAA, Taylor Morrison Home Corp TMHC and Caesarstone Sdot-Yam Ltd CSTE.

Related Link: Here's How The Brexit Could Impact The U.S. Housing Market

"Our top homebuilding picks are CAA based on its strong land positions and potential to create value through the Ryland integration. TMHC given the under appreciation of portfolio repositioning at current valuation. In Products, we continue to like CSTE due to the quartz secular growth story."

Ratings And Action At Time Of Writing

Credit Suisse remains bullish on the U.S. Housing market due to low rates, healthy demand trends and tailwinds from lower mortgage rates.

Credit Suisse rates CalAtlantic Outperform with a $40 price target. The stock closed Tuesday trading at $35.46, up 2.31 percent on the day.

Taylor Morrison has an Outperform rating and $18 price target. The stock closed Tuesday up 1.74 percent on the day, trading at $14.03.

Casesarstone is also rated Outperform; it carries a $47 price target. The stock closed Tuesday up 1.29 percent on the day, trading at $32.92.