UBS Makes Changes in Top Stocks to Buy on the U.S. Key Call List

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By Lee Jackson Updated Published
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The leading firms on Wall Street maintain a list of their top stocks to buy as their highest conviction calls from the top analysts in the firm. What is somewhat rare is to see a firm add a stock to these key lists right at the beginning of a very busy earnings season. UBS has done just that today. The firm believes these names have the best chance for significant price appreciation over the next six to 12 months. UBS has added two top names to the current U.S. Key Call List, and it has updated some of the other Key Calls in the portfolio.

Amazon.com Inc. (NASDAQ: AMZN) makes its debut on the Key Call list today The UBS team sees an acceleration in revenue growth, video game console sales that could be outstanding and a very underappreciated advertising system as key drivers. UBS ups the rating on the top Internet retailer from Neutral to Buy and raises its price target from $305 to $385. The Thomson/First Call price target for the stock is $331. Amazon closed Thursday at $310.77.

CBOE Holdings Inc. (NASDAQ: CBOE) is also a newcomer to the UBS list. The Chicago Board Options Exchange is the world’s largest options exchange and the leader in product innovation, options education and trading volume. Plain and simple, UBS thinks the stock is the best growth story in the exchange industry. It raises the stock from Neutral to Buy and its price target from $45 to $56. The consensus price target is posted much lower at $46. Investors are paid a 1.5% dividend.

Google Inc. (NASDAQ: GOOG) is a top member of the Key Call list and posted outstanding earnings. Core website gross revenues grew by 22% as the company continues to grow its huge online advertising business. UBS raises its price target to $1,100 from $1,020. The consensus for the stock is $1,000. Google closed Thursday at $888.79 and is trading up almost $90 in the premarket.

Here are the other top names to buy and their price targets on the UBS Key Call list:

  • Anadarko Petroleum Corp. (NYSE: APC), target price $110. Consensus $111. Closed Thursday at $96.75.  Dividend yield 0.8%.
  • GT Advanced Technologies Inc. (NASDAQ: GTAT), target price $10. Consensus $7.27. Closed Thursday at $4.38.
  • KeyCorp. (NYSE: KEY), target price $13.50. Consensus $13. Closed Thursday at $12.55. Dividend yield 1.9%.
  • Lowe’s Companies Inc. (NYSE: LOW), target price $52. Consensus $51.50. Closed Thursday at $49.02. Dividend yield 1.5%.
  • Medivation Inc. (NASDAQ: MDVN), target price $74. Consensus $70. Closed Thursday at $52.78.
  • NetApp Inc. (NASDAQ: NTAP), target price $50, Consensus $45. Closed Thursday at $40.64. Dividend yield 1.4%.
  • Ross Stores Inc. (NASDAQ: ROST), target price $80. Consensus $75. Closed Thursday at $73.72. Dividend yield 0.9%.
  • PulteGroup Inc. (NYSE: PHM), target price $22. Consensus $20. Closed Thursday at $16.66. Dividend yield 1.2%.
  • Time Warner Inc. (NYSE: TWX), target price $72. Consensus $71. Closed Thursday at $67.95. Dividend yield 1.7%.
  • Unum Group (NYSE: UNM), target price $38. Consensus $33. Closed Thursday at $31.91. Dividend yield 1.9%.

Stocks that make the Key Call list at UBS represent the very best of the best. Theses are the names that are touted to the firm’s biggest institutional clients. They are also the names that the firm has the utmost confidence in going forward. That is a good reason for investors to consider them for their own portfolios.

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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