With this week shaping up to be all about the Federal Reserve meeting and the potential for the first rate increase in years, many investors are looking to reset portfolios with growth stocks that are more reasonable in price. In a new research report, Jefferies has a host of new ideas for institutional and high net worth accounts.

The Jefferies team highlights eight new top growth stock calls for this week. We screened the list for the stocks that are priced the best and offer the best upside to current price targets.

Bank of America

This company has continued a methodical march back to financial health and is a true big money center bank to make the list of stocks to buy at Jefferies. Bank of America Corp. (NYSE: BAC) is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations and governments in the United States and internationally.

Operating 5,100 banking centers, 16,300 ATMs, call centers, online and mobile banking platforms, the company continues to open new markets and expand share, which Jefferies feels the company excels in. The Merrill Lynch brokerage arm has continued to supply the bank with outstanding revenues and growth.

The Jefferies team recently met with CEO Brian Moynihan and came away feeling good about the overall outlook for the bank. With the potential for strong commercial lending and credit card originations, and trading at just 10 times 2016 estimated earnings, the stock makes good sense now.

Bank of America investors are paid a 1.25% dividend. The Jefferies price target for the stock is $21, and the Thomson/First Call consensus target is $19.29. The stock closed on Friday at $16.04.

ALSO READ: Jefferies Starts Coverage on Biotechs, 3 Top Stocks to Buy Now

Celgene

This is one of the top picks at Jefferies, which feels this large cap stock has solid upside potential for 2015 and next year. Celgene Corp. (NASDAQ: CELG) has an outstanding partnered pipeline, which the firm thinks is low risk and has the potential to yield several blockbuster drugs. The analyst also thinks the company can grow earnings 15% on a compounded annual growth rate basis going forward.

Celgene provided strong guidance earlier this year surrounding its Otezla launch and encouraging feedback from doctors on the potential of new triplet regimens in myeloma. Analysts across Wall Street are raising their estimates for the drug, as after a little more than a year on the market, Otezla, which treats psoriasis and psoriatic arthritis, has achieved considerable prescriptions among physicians.

Celgene’s blockbuster blood cancer drug Revlimid continues to dominate. Pomalyst sales grew nearly 46% year over year last quarter. Cancer drug Abraxane is also growing at a respectable rate, so the company continues to have a strong lineup of top-selling drugs.

While second-quarter numbers were solid, the rest of the year could prove to be better. The Jefferies price target is $140, though the consensus target is $149.83. Shares closed on Friday at $123.97.
PayPal

This company was recently spun-off from eBay, and many on Wall Street think the real growth is in the payment segment. PayPal Holdings Inc. (NASDAQ: PYPL) operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. It enables businesses of various sizes to accept payments from merchant websites, mobile devices and applications, as well as at offline retail locations through a range of payment solutions across company’s payments platform, including PayPal, PayPal Credit, Venmo and Braintree products.

The company’s platform allows customers to pay and get paid, withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies. PayPal has also been considered a potential gem property to own, or it may continue to be a large acquirer of other companies.

The Jefferies team thinks that revenue growth of 16% over the next five years is possible and the scarcity value, or lack of competition, could help drive the multiple for the company. The analysts also pointed to the new acquisitions PayPal has made, like Venmo and Paydiant, that are leveragable with the combination of Paydiant. They also think that the eBay separation is likely to help the company’s positioning with large merchants.

ALSO READ: 5 Oil and Gas Stocks Analysts Want You to Buy Now

Jefferies has a large $44 price target. The consensus price objective is $43.44. The stock closed on Friday at $33.55.

Western Alliance Bancorp.

The Jefferies team likes this top small-cap bank. Western Alliance Bancorp. (NYSE: WAL) is one of the fastest-growing bank holding companies in the United States. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior, personalized services and a full spectrum of deposit, lending, treasury management and online banking products and services.

Western Alliance Bank operates full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank.

The Jefferies team says that, despite slower than expected loan growth, the bridge loan business is good, and they think the company’s access to booming Silicon Valley is a big positive. Despite a soft second-quarter earnings report, company management is comfortable with current guidance and net interest margin is expected to rise regardless of any action taken by the Fed.

The Jefferies price target is $40, and the consensus target is $36.56. The shares closed on Friday $31.53.

ALSO READ: T. Boone Pickens Trade Highlights Last Week’s Insider Selling

While Jefferies thinks the Fed waits until December to raise rates, there is always a chance it will happen this week. While the initial market reaction may be negative, getting this initial lift-off move out of the way could be very positive for the market through the rest of the year.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.