Investing
Top Analyst Buy Ideas From Raymond James (RJN, NUAN, SWKS, AAPL, C, RF, XOM, EPD)
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Last week we featured top picks from analysts at some of Wall St.’s largest firms. We had everything from the very eclectic to the standard large cap parade of names. This week we examine some of the top picks from Tampa-based Raymond James Financial Inc. (NYSE: RJF). It is considered one of the top regional firms in the country, but its recent purchase of Morgan Keegan has significantly expanded not only its footprint, but its Wall St. presence.
Since its top “Analyst Buy Ideas” list included almost 40 names, we divided the list into the top picks in three sectors: technology, financial and specialty energy. We then screened for names with the highest potential percentage upside.
In technology, Raymond James is bullish on Nuance Communications Inc. (NASDAQ: NUAN). Known as a “serial acquirer” on the street, this voice recognition technology company is trading today at $23.38. The Raymond James price target is $31, a potential 38% upside. Wall St. consensus is right in line at $30. They also favor Skyworks Solutions Inc. (NASDAQ: SWKS). This chip supplier to Apple Inc. (NASDAQ: AAPL) has been very volatile lately over concerns of order slowdowns to Apple vendors. Trading today at $20.5o, the buy list target is $31, or 51.75% higher than currently. The street target is in line at $30.
The analyst picks for top gains in the financial sector include large money center banks and regional banks. One name that stands out is Citigroup Inc. (NYSE: C). With a worldwide presence that continues to grow, their target price is $52. Trading today at $42.57, that represents a solid gain of more than 22%. The consensus target $47. Raymond James also likes Regions Financial Corp. Inc. (NYSE: RF). The company Raymond James acquired Morgan Keegan from trades today at $7.29. The target of $8.50 would be an increase of more than 17.%. The Street consensus is $8.
In the energy sector, the preference is for big integrateds and pipeline limited partnerships. Exxon Mobil Corp. (NYSE: XOM) is trading today at $89.53, right at the Raymond James target of $89.58. The consensus target is $95.50. With this name it is possible Raymond James could up their price target or remove the name. It also favors Houston-based Enterprise Products Partners L.P. (NYSE: EPD). This standout MLP trades at $54.35, versus their price target of $62 and a Wall St. target of $59.75. This would be an almost 14% gain, in addition to Enterprise Products quarterly 4.80% distribution of $0.65.
The Raymond James list is a nice balance of large- and mid-cap growth names that offer investors diversity and total return. It may be smart to remember that the markets rallied sharply off the fiscal cliff agreement. They could sell off just as fast on any debt ceiling disagreements.
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