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Top Stock Picks for the Second Half of 2023, According to Credit Suisse
Alcoa: Mounting a Comeback
Credit Suisse analyst Curt Woodworth believes that aluminum producer Alcoa is poised for a comeback in the second half of 2023. Despite a 25% decline in its shares so far this year, Woodworth expects a rebound as LME aluminum prices recover from lows. Woodworth highlights the compelling demand growth for aluminum due to increased consumer preference for sustainable materials and the underappreciated leverage from the EV/energy transition. With a buy rating from the average analyst, Alcoa's stock could potentially rally by nearly 35% over the next year.
International Game Technology: Big Upside Potential
Analyst Ben Chaiken predicts that gaming stock International Game Technology (IGT) could more than double its share price in the next year, following a 40% rally in the first half of 2023. Chaiken cites improving sentiment in the broader gaming space, the potential for a re-rating, significant free cash flow generation, and the possibility of higher estimates as factors that could drive IGT's growth. Furthermore, reaching investment grade metrics and the removal of the restricted payment basket could enable unlimited capital return through initiatives like increased stock buybacks.
Insmed: Skyrocketing Potential
Biopharmaceutical stock Insmed has the potential to outperform the market after experiencing relatively modest gains this year, according to analyst Judah Frommer. Frommer forecasts that the stock could skyrocket more than 125% within the next 12 months, despite only adding 2.1% so far in 2023. Frommer believes that Insmed's drugs in development are not fully appreciated by investors as focus shifts from quarterly revenue changes to the long-term investment opportunity in the pipeline. All analysts with a rating on the stock consider it a buy, making Insmed an attractive choice.
MasTec: Capitalizing on Long-Term Growth Opportunities
While infrastructure construction company MasTec may not have huge gains expected in the near term, analyst Jamie Cook still sees potential. With just a 1.5% upside anticipated, considering its already significant rally of over 35% this year, MasTec is trading at a discount compared to its peers. Cook believes that the company is well positioned to capitalize on long-term growth opportunities as the focus shifts away from the oil and gas business. Despite a moderate outlook, MasTec remains an attractive option for investors.
Overall, Credit Suisse's top stock picks for the second half of 2023 are diverse and offer various opportunities for growth. From potential comebacks to skyrocketing potential, these stocks present attractive prospects for investors seeking to navigate the market in the coming months.
Conclusion: Hot Takes on Credit Suisse's Top Stock Picks for the Second Half of 2023
Credit Suisse's top stock picks for the second half of 2023 offer intriguing possibilities for investors. These picks, if taken into consideration, could have implications for a new business looking to make strategic investment decisions.
The first hot take arises from Alcoa, the aluminum producer expected to mount a comeback. With increasing consumer preference for sustainable materials and the rising prominence of the EV/energy transition, a new business involved in the production or utilization of aluminum could witness a surge in demand. This presents an opportunity for entrepreneurs to explore innovative solutions and cater to the growing market.
In the gaming industry, International Game Technology (IGT) shows big upside potential. As the gaming sector experiences improving sentiment, a new business focusing on game development, eSports, or related services could tap into this burgeoning market. The possibility of higher estimates and unlimited capital return also augurs well for startups seeking growth opportunities.
Insmed, the biopharmaceutical stock with skyrocketing potential, could impact new businesses in the healthcare and pharmaceutical sectors. With drugs in development that are not yet fully appreciated by investors, startups in the biotech space could discover collaboration opportunities with Insmed, leading to mutual growth and advancements in the field.
Finally, MasTec, the infrastructure construction company, offers long-term growth opportunities. As the focus shifts away from the oil and gas industry, a new business specializing in sustainable infrastructure or renewable energy projects could benefit from partnering with or providing services to MasTec.
The key takeaway for new businesses considering these stock picks is to align their strategies with the potential growth areas identified by Credit Suisse analysts. By paying attention to market trends and adapting business models to leverage these opportunities, entrepreneurs can position themselves for success in the evolving landscape of the second half of 2023.
Article First Published at: https://www.cnbc.com/2023/07/11/credit-suisse-gives-its-top-stock-picks-for-the-second-half.html.svg)
