UBS Updates Stocks to Buy in Its Key Call List Portfolio

Investing

Published: June 21, 2013 8:10 am

Last Updated: March 18, 2020 9:49 pm

As we reach the midpoint in the year, we like to review the top stock calls from the major firms around Wall Street. The UBS A.G. (NYSE: UBS) Key Call list represents the top high conviction names to buy chosen from all the sectors covered by the firm. These are typically longer term portfolio ideas, not quick trade binary event suggestions. Here is the UBS Key Call list portfolio stocks to buy.

Anadarko Petroleum Corp. (NYSE: APC) continues to be one of the highest rated names on Wall Street. Anadarko has discovered more than 100 trillion cubic feet of natural gas in the Rovuma Basin area, offshore Mozambique. The area is touted to contain around 250 trillion cubic feet of natural gas, a volume sufficient enough to meet global natural-gas demand for two years. The company also is planning to build the second-largest LNG export terminal in the world to serve the energy-hungry Asian countries. Jefferies has a $111 price target for this top name. The UBS price target for the stock is $105. The Thomson/First Call estimate is also $105. Investors are paid a small 0.4% dividend.

Google Inc. (NASDAQ: GOOG) was named as one of the stocks resistant to interest rate increases this week on CNBC. The company continues to dominate technology with everything from search to the Android smartphone operating system. The UBS price target for the stock is $945, while the consensus target is at $950.

KeyCorp Inc. (NYSE: KEY) is the top financial name to buy on the Key Call list. The company is one of the leading regional banks in the country, with almost 1100 branches spread across 14 central and Midwest states. The UBS price target for the stock is $11, and the consensus target is at $11 as well. Investors are paid a 2.1% dividend.

Earlier this week we took a look at the top stocks to buy from the Merrill Lynch US 1 list.

Lowe’s Companies Inc. (NYSE: LOW) has been a large benefactor of the current housing boom. The company also has made a $205 million offer to struggling California hardware chain Orchard Supply Hardware Stores (NASDAQ: OSH). UBS has a $48 price target, and the consensus price target is at $46. Investors receive a 1.7% dividend.

Monster Beverage Corp. (NASDAQ: MNST) is a very profitable and very controversial company. A group representing physicians has suggested that advertisements directed at young people for energy drinks should be discontinued. Headline risk aside, the company remains a top stock to buy. UBS has a $66 price target, but the consensus target is lower at $62.

Ross Stores Inc. (NASDAQ: ROST) remains the top retail name to buy at UBS. Even though store traffic was flat for the quarter, an increase in the average basket size helped gross margins carry on their impressive performance. UBS has a $75 price target, and the consensus target is lower at $70. Investors are paid a 1.0% dividend.

Time Warner Inc. (NYSE: TWX) is a media powerhouse stock to buy at UBS. With its popular brands ranging from HBO to CNN to Sports Illustrated, revenues continue to grow. UBS has a $66 price objective, while the consensus target is $66.50. Investors are also paid a 2.0% dividend.

Unum Group (NYSE: UNM) is anticipating a rise in operating earnings of around 6% in 2013; earnings were $887 million in 2012. They are also launching a “Group hospital indemnity” product, which will help its customers to be safeguarded from the costs incurred at the time of unexpected health events resulting in hospitalization. The new product offerings are expected to drive the anticipated earnings growth. The UBS price target for the stock is $31, the same as the consensus target. Investors receive a 1.9% dividend.

Yum! Brands Inc. (NYSE: YUM) has a big winner in their Taco Bell restaurants. For 2012, Taco Bell was Yum!’s shining star, and it may continue to hold that position this year as the fast-food Mexican chain is again shaking up its menu with products aimed to re-engage the 20- to 30-year-old demographic. UBS has an $80 price target for the stock, while the consensus is lower at $74. Investors are paid a 1.9% dividend.

The market has not responded well to Fed Chairman Ben Bernanke’s timeline for the possible tapering of current monthly bond purchasing, known as quantitative easing. A long-awaited correction in what should continue to be a strong market may give investors a perfect opportunity to buy some of these top names.

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