UBS: Here are the 10 stocks that are set to explode higher

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In a note to clients circulated May 12, UBS equity research highlighted the bank’s top stock picks for the second half of 2017.

“We asked this of all UBS Analysts in North America. Their responses are collected here, to provide you with a snapshot of our highest conviction Buy-rated investment ideas in North America today,” the bank said.

Business Insider went through the list and picked out the 10 stocks with the most upside potential according to their UBS analyst price targets compared to their current prices.


10. Allergan

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Markets Insider

Ticker: AGN

Sector: Healthcare

Performance so far this year: +9.11%

Price target: $275.00

Implied upside potential: 20%

UBS says: AGN has a strong portfolio and investors should gain confidence in growth prospects.

Click here for a real-time Allergan chart.


9. Terex Corporation

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Markets Insider

Ticker: TEX

Sector: Industrials

Performance so far this year: +2.66%

Price target: $40.00

Implied upside potential: 20%

UBS says: TEX will execute changes to their crane business with a new management team in place. The company will reshape their product offerings overall.

Click here for a real-time Terex Corporation chart.


8. Adient

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Markets Insider

Ticker: ADNT

Sector: Industrials

Performance so far this year: +21.57%

Price target: $86.00

Implied upside potential: 20%

UBS says: “ADNT is the cheapest auto supplier trading at ~7.5x our 2017E EPS, yet we see a compelling margin expansion opportunity.”

Click here for a real-time Adient chart.


7. E*Trade Financial

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Markets Insider

Ticker: ETFC

Sector: Financials

Performance so far this year: -1.13%

Price target: $43.00

Implied upside potential: 22%

UBS says: ETFC will either improve operating metrics or seek a buyer for the company.

Click here for a real-time E*Trade Financial chart.


6. Energy Transfer Equity LP

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Markets Insider

Ticker: ETE

Sector: Energy

Performance so far this year: -3.06%

Price target: $24.00

Implied upside potential: 28%

UBS says: Expect ETE to move more oil, to raise its dividend, and to grow earnings.

Click here for a real-time Energy Transfer Equity LP chart.


5. Tesoro Corporation

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Markets Insider

Ticker: TSO

Sector: Energy

Performance so far this year: -7.5%

Price target: $107.00

Implied upside potential: 29%

UBS says: “TSO is our top pick as we believe it offers the most upside to fair value and provides a stream of catalysts that could move the share price higher.”

Click here for a real-time Tesoro Corporation chart.


4. Parsley Energy

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Markets Insider

Ticker: PE

Sector: Energy

Performance so far this year: +8.07%

Price target: $44.00

Implied upside potential: 37%

UBS says: Investors have underappreciated this stock with strong cash flow.

Click here for a real-time Parsley Energy chart.


3. Esperion Therapeutics Inc.

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Markets Insider

Ticker: ESPR

Sector: Healthcare

Performance so far this year: +187.65%

Price target: $52.00

Implied upside potential: 46%

UBS says: “Esperion is a top pick as we believe the company is strategically well-positioned with a novel lipid-lowering oral agent that has been de-risked from a clinical and regulatory perspective, offering investors a highly attractive risk-reward profile.”

Click here for a real-time Esperion Therapeutics Inc. chart.


2. Halliburton Company

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Markets Insider

Ticker: HAL

Sector: Energy

Performance so far this year: -16.38%

Price target: $70.00

Implied upside potential: 53%

UBS says: HAL is the largest pressure pumping provider, and strong execution should lead to robust incremental margin growth.

Click here for a real-time Halliburton Company chart.


1. Anadarko Petroleum Corporation

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Markets insider

Ticker: APC

Sector: Energy

Performance so far this year: -26%

Price target: $80.00

Implied upside potential: 54%

UBS says: APC is undervalued following the sharp selloff after a tragic home explosion in Colorado.

Click here for a real-time Anadarko Petroleum Corporation chart.