The new year is well under way and the major firms on Wall Street are all presenting their best stock ideas for 2014. The team at Cantor Fitzgerald is no exception. The stated goal for their Global Best Ideas report is to provide a thoughtful, action-oriented research product that involves a concise exploration of the issues embedded in each analyst’s industry and investment overviews for the coming year.
Like many firms that we cover, the Cantor Fitzgerald Global Best Ideas list contains quite a few stocks, many of which are international names. We have focused on the 10 top names to buy that are based and trade in the United States. Cantor, like many firms on Wall Street, is very constructive on equity for 2014, but stresses that single stock selection will be more important this year. The rising tide in 2013 that lifted almost all boats may not be in play this year.
Here are 10top domestic names to buy for 2014 from Cantor Fitzgerald.
Apple Inc. (NASDAQ: AAPL) is a top tech stock to buy for 2014 at Cantor Fitzgerald. With a newly signed deal with China Mobile, the smartphone and tablet giant will have exposure to a gigantic potential consumer market in China. This deal could be the best thing to happen to Apple shareholders after the company’s announcement to spend $45 billion over three years in dividends and share repurchases, as it would provide Apple with potential access to more than 700 million customers in the second-largest economy. This market has more than doubled in size in the past two years, and it still has a low penetration rate. Investors are paid a 2.3% dividend, which may be going higher in 2014. The Cantor price target for the stock is $777. The Thomson/First Call price target for the stock is $595.73. Apple closed Tuesday at $546.39.
Celldex Therapeutics Inc. (NASDAQ: CLDX) focuses on developing therapeutic antibodies, antibody drug conjugates, immune system modulators and vaccines. Investors are interested in Celldex because of the unmet need therapies the company is developing. Celldex is working on drug indications that include therapies for glioblastoma, breast cancer, dense deposit disease and lymphoma. A recent secondary stock offering helped shore up the company coffers. The company is expected to update their CDX-1135 drug status next month, which could be a huge catalyst. The Cantor Fitzgerald price target is set at $39. The consensus estimate is$36.89. Celldex closed Tuesday at $27.65. A move to the target would be a 60% gain for shareholders.
Digital Realty Trust Inc. (NYSE: DLR) net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the real estate investment trusts (REITs) industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $48.04 million to $50.71 million. This REIT pays investors a strong 6.2% distribution. Cantor Fitzgerald has a $58.50 price objective, and the consensus stands lower at $55.78. The stock closed Tuesday at $51.20.
Facebook Inc. (NASDAQ: FB) had an outstanding year in 2013, and may be poised to do even better in 2014. The rapid increase of mobile advertising sales has put a strong wind at the company’s back. Plus, the company has no viable challenger to threaten its 1.1 billion captive user base. The Cantor Fitzgerald target is at $65. The consensus price target for the social media giant is $60.42. Facebook closed Tuesday at $57.74.
Google Inc. (NASDAQ: GOOG) continues to dominate Internet advertising and is another top stock to buy on the Cantor List. The search giant has for years been evasive about its plans for a so-called public cloud of computers and data storage that is rented to individuals and businesses. Last month, the company announced pricing, features and performance guarantees aimed at companies ranging from start-ups to multinationals. This is a direct shot across the Amazon bow. The Cantor Fitzgerald price target for the stock is $1,175, and the consensus is at $1,150.82. Google closed Tuesday at $1,149.40.
Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) is an orphan drug maker with a bull’s-eye on its back. After buying Gentium, an Italian-based biopharma for its rare liver disease drug Defitelio last December, the buyout rumors have heated up. Jazz is high on the buyout rumor list because it has both a strong commercial portfolio of orphan drugs and it is an expatriate U.S. company now based in Ireland. The Cantor Fitzgerald price objective for this exciting stock is $145. The consensus is at $139.63. The stock closed Tuesday at $145.48.
Splunk Inc. (NASDAQ: SPLK) is rated at Buy at Cantor, and it is one of their top mid-cap name for 2014. The analysts believe the company has a first move advantage in a market supported by strong secular growth, which will provide time for the company to establish its platform strategy. Investors are urged to look for a better entry point. The Cantor Fitzgerald price target is set at $77. The consensus price target for the stock is $73.08. Splunk closed Tuesday at $75.04.
SUPERVALU Inc.‘s (NYSE: SVU) quarterly net profit nearly doubled as the supermarket operator benefited from cost savings after selling hundreds of underperforming grocery stores last year. Last week the company, whose supermarket chains include Cub, Farm Fresh and Shop ‘N Save, said net income rose to $31 million, or $0.12 per share, in the third quarter ended Nov. 30 from $16 million, or $0.08 per share, a year earlier. The Cantor Fitzgerald price target is $9, and the consensus is pegged at $7.63. The stock closed Tuesday at $6.40.
Thermo Fisher Scientific Inc. (NYSE: TMO) has seen the short interest in its stock rise dramatically. The Cantor analysts love that fact and have named the stock their top pick for the second year in a row. The firm sees the integration of the Life Technologies acquisition as the biggest catalyst in 2014 for the stock. The Cantor Fitzgerald price target is $128, and the consensus is at $117.94. The stock closed Tuesday at $114.76.
Verastem Inc. (NASDAQ: VSTM) is discovering and developing drugs to treat cancer by the targeted killing of cancer stem cells. Cancer stem cells are an underlying cause of tumor recurrence and metastasis. Verastem is developing small molecule inhibitors of signaling pathways that are critical to cancer stem cell survival and proliferation. The stock was added to the Nasdaq Biotechnology Index in December. Cantor Fitzgerald has a $22 price target, while the consensus figure is $22.11. Verastem closed Tuesday at $12.81.
The Cantor Fitzgerald top picks are an interesting mix of mega-cap tech and small-cap biotechnology. The analysts also have focused on turnaround stories, which can add huge value for investors. Most of these names should be suitable for portfolios with medium risk tolerance.
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