Credit Suisse has selected stocks that it sees at “inflection points,” with catalysts occurring that will drive them higher.
“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,” bank staffers wrote in a commentary cited by CNBC.
The U.S. stocks they chose include health insurance company Humana (HUM), information services company Dun & Bradstreet (DNB) , and information software company ZoomInfo Technologies (ZI).
Humana will benefit if the U.S. government’s Centers for Medicare & Medicaid Services sanction higher rates for Medicare Advantage insurance plans, Credit Suisse analysts said.
They have a price target of $540 for the stock, which represents a 27% jump from its recent level of $425. Shares have fallen about 10% so far this year, even with a sharp bounce Thursday.
Dun & Bradstreet, should reap the rewards of “accelerating organic growth coupled with a return to margin expansion in 2022,” Credit Suisse analysts said. That will “help drive a multi-year multiple rerating story.” They have a stock-price target of $35 for the company, which is 79% higher than its recent level of $19.57. Shares fell about 5% Thursday amid broader market weakness.
When it comes to ZoomInfo -- not to be confused with Zoom Video -- the analysts wrote that “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.” Credit Suisse analysts have a $100 price target for the stock, double its recent level of $49.69.
