Credit Suisse: 3 Basic Materials Stocks To Consider And 1 To Avoid
In a recent report, analysts at Credit Suisse outlined their 2015 outlook for the Basic Materials industry. Here’s a breakdown of their top stocks to own and top stocks to avoid in 2015.
Credit Suisse’s top stock pick in the sector is Sealed Air Corp (NYSE: SEE). Analysts see falling oil prices providing huge benefits for Sealed Air and boosting the company’s bottom line in 2015. Credit Suisse has a $51.00 price target on the stock, a price that represents an 18.4 percent upside from current levels.
Shares traded recently at $43.29, up 2.2 percent Thursday afternoon.
United States Steel
Credit Suisse believes that United States Steel Corporation (NYSE: X) has all the advantages to be one of the most profitable steel-producing companies in the world (captive iron ore, cheap and abundant coal, gas and scrap), but the company has historically struggled to operate efficiently. However, Credit Suisse believes better days are ahead for U.S. Steel. Their price target for the stock is $50.00, a 102.1 percent upside from current levels.
Shares traded recently at $25.22, up 2.3 percent.
Credit Suisse's final pick in the Basic Materials sector is Nitrogen producer CF Industries Holdings, Inc. (NYSE: CF). Analysts note CF Industries’ favorable capital allocation and free cash flow as positives for the stock. Credit Suisse has a $315.00 price target on CF Industries, a 7.4 percent upside from current levels.
Shares traded recently at $292.05, up 0.45 percent.
Avoid? Intrepid Potash
Credit Suisse is on the sidelines when it comes to the U.S. leader in potassium chloride production, Intrepid Potash, Inc. (NYSE: IPI). Analysts point to the company’s low free cash flow generation and slow implication of cost-cutting initiatives as reasons to avoid the stock. Credit Suisse’s $13.00 target on the stock represents a 9.0 percent downside from current levels.
Shares traded recently at $14.27, up 2.6 percent.
Latest Ratings for SEE
|Sep 2016||JP Morgan||Initiates Coverage on||Neutral|
|Aug 2016||UBS||Initiates Coverage on||Buy|
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