It’s that time of year: 2024 forecasts are all upon us. If you’re interested in stocks, you’ll want to have a look at this one from UBS.
Each of Its analysts offered his/her top stock pick for next year. And out of that, UBS formed a list of the 24 “most compelling” stock ideas for the year ahead, it said in a report.
“We've focused on stocks where we believe our analysts have a differentiated view versus consensus, and where we have interesting or proprietary data sources,” UBS wrote.
In addition, “we have considered potential upside to price target and risk/reward skew, as well as a stock's exposure to key themes and factor preferences from a strategy perspective.”
Here are 10 of the best-known names on the list, in alphabetical order.
Aerospace, Energy, Beverages
Boeing (BA) -)
Tuesday price quote: $262.50. UBS 12-month price target: $315. UBS 12-month total return forecast: 23%.
“The demand backdrop for aircraft is strong,” wrote UBS analyst Gavin Parsons. “Boeing stock tracks free cash flow, which we expect to compound at 36% from 2023-2027.”
Chevron (CVX) -)
Tuesday price quote: $152.80. UBS 12-month price target: $185. UBS 12-month total return forecast: 28%.
Coca-Cola (KO) -)
Tuesday price quote: $58.40. UBS 12-month price target: $70. UBS 12-month total return forecast: 22%.
“Coke has strengthened its market leadership position and shown a greater willingness to pursue
higher growth opportunities in recent years through mergers and acquisitions, investment behind core brands, and innovation,” wrote UBS analyst Peter Grom.
Entergy (ETR) -)
Tuesday price quote: $100.70. UBS 12-month price target: $119. UBS 12-month total return forecast: 19%
Merck (MRK) -)
Tuesday price quote: $107.50. UBS 12-month price target: $122. UBS 12-month total return forecast: 18%.
Technology, Telecommunications, Healthcare
Meta (META) -)
Tuesday price quote: $355.25. UBS 12-month price target: $425. UBS 12-month total return forecast: 28%.
The company is “underappreciated for improving engagement across surfaces, better ad technology, ramping Reels monetization, and expanding advertiser base through new formats like click-to-message ads,” wrote UBS analyst Lloyd Walmsley.
Micron Technology (MU) -)
Tuesday price quote: $87.20. UBS 12-month price target $90. UBS 12-month total return forecast: 10%.
T-Mobile US (TMUS) -)
Tuesday price quote: $155.80. UBS 12-month price target: $186. UBS 12-month total return forecast: 19%.
“We expect T-Mobile’s subscriber/ARPU [average-revenue-per-unit] momentum to continue, given its time to market advantage in 5G,” wrote UBS analyst John Hodulik. Meanwhile, its margin gap behind peers should narrow further, he said.
UnitedHealth (UNH) -)
Tuesday price quote: $519.55. UBS 12-month price target: $640. UBS 12-month total return forecast: 21%.
Visa (V) -)
Tuesday price quote: $259.10. UBS 12-month price target: $305. UBS 12-month total return forecast 19%.
The company’s strengths include “profitability …, balanced exposure (discretionary vs. non-discretionary, goods vs. services), ability to grow through moderate recessionary conditions (debit mix for topline, expense controls for bottom line), and expansion into new flows (notably via Visa Direct),” wrote UBS analyst Tim Chiodo.
The author owns share of Coke, Meta and UnitedHealth.
