Market Cap: $728.3 billion
Recent Price: $139.14
Price Target: $150
Credit Suisse analyst Kulbinder Garcha thinks Apple (AAPL) has a lot going for it, including its growing Services business, but it still boils down to iPhone and iPad growth.
"Multiple growth drivers including increasing share within compute (iPhone, iPad, Mac) and greater adoption of the iOS ecosystem as well as a commitment to cash distributions," Garcha wrote to investors. "Additionally, the market may underestimate the gross profit contribution from Services, but more important, its growth potential and the annuity type business it drives in terms of retention and replacement across the business."
Market Cap: $402.6 billion
Recent Price: $138.79
Price Target: $170
Credit Suisse's Stephen Ju believes that even though Facebook (FB) is slowing its ad loads, it will still drive revenue growth, thanks to Instagram, premium video and Facebook's dynamic product ads.
"Street models continue to underestimate the long-term monetization potential of upcoming new products (Graph Search) & optionality and upward bias to estimates, which do not contemplate contributions from multiple other products including Messenger and WhatsApp," Ju wrote.
Name: KLA Tencor
Market Cap: $14.7 billion
Recent Price: $93.20
Price Target: $96
Credit Suisse analyst Farhan Ahman notes that KLA-Tencor (KLAC) should be able to grow revenues above a 5% compounded annual growth, while continued to expand operating margins.
"In addition it is benefitting from the favorable Gen 5 product cycle, which can allow it to grow its revenues above industry in CY17 and CY18," Ahman wrote to investors. "We also believe that valuations are attractive and investors are underestimating both growth and margins for the business."
Market Cap: $86.5 billion
Recent Price: $1,754.24
Price Target: $1,935
Online travel agency Priceline (PCLN) has several things going for it, Credit Suisse analyst Paul Bieber noted.
Chief among them are: low market share, a leadership position in efficient marketing, unparalleled global scale, exposure to Asia and China, an under-appreciated review system and a long track record of executing.
Name: Global Payments
Market Cap: $12 billion
Recent Price: $79.14
Price Target: $86
Credit Suisse analyst Paul Condra is confident in Global Payment's (GPN) management team to drive both cost and revenue synergies from its Heartland Payments Systems acquisition.
"See long runway for GPN to continue to expand international portfolio through M&A and JV arrangements," Condra wrote in a note to investors.
Market Cap: $27.5 billion
Recent Price: $25.18
Price Target: $30
Credit Suisse analyst John Pitzer is positive on Micron (MU) , highlighting its industry supply discipline, as well as the potential for its strategic value.
Pitzer noted at current levels, Micron investors are getting a "[f]ree option on 3D NAND and XPoint."
Name: The Ultimate Software Group
Market Cap: $5.9 billion
Recent Price: $196.67
Price Target: $260
Credit Suisse analyst Michael Nemeroff is encouraged by Ultimate Software Group's (ULTI) high (over 93%) recurring revenue, which is growing at over 25% year-over-year. As such, it deserves its premium valuation to its peer group, at 6.1 times enterprise value, compared to 4.8 times for its peers, according to Nemeroff.