Credit Suisse recommends stocks with a Warren Buffett-favored trait for investors managing the growing risk in stock markets. The company believes companies with “economic moats” could help investors protect their portfolios from increasing economic uncertainty. It’s a term popularized by the legendary investor and refers to a company’s ability to maintain competitive advantages over its rivals, such as: B. a better business model or a better size. “The most important [is] trying to find a deal with a wide and long-lasting moat…protecting a great economic castle with an honest lord in charge of the castle,” Buffett said at a meeting in 1995, according to CNBC’s Warren Buffett Archive. Credit Suisse identified bottom-rising opportunities in companies with high barriers to entry as macro risks mount Noting aggressive anti-inflation measures by central banks around the world and growing risks to 2023 earnings estimates, the firm’s strategists recommended investors to underweight equities. “Our economists do not rule out a recession and expect US GDP growth to be 0.9% in 2023, compared to -0.2% in the eurozone,” analyst Richard Kersley wrote in a statement dated Thursday ditches that have “superior innovation ability” with strong pricing power. Here are the names. Air Products & Chemicals shares can climb more than 20% from here as the company is “among the most resilient business models,” as it says Credit Suisse finds it difficult to transport gases over long distances. The company has a price target of $295 for the company and shares closed at $241.46 on Wednesday. Hershey was approved by the company because its leading confectionery market share “positions it for a year of above-average growth (5%) in 2022,” according to the release. Credit Suisse has a price target of $250 for the company, up 11.9% from Wednesday’s close of $223.41 per share. “The market share gains are likely to continue into 2022 and likely beyond as retailers have committed more shelf space to the company,” the statement said. According to Credit Suisse, McDonald’s is “well positioned” to perform regardless of the macro backdrop due to its leading value proposition. The fast-food company is also recovering in overseas markets, read the note. Other companies with shelters in America include Microsoft, Nextera and Autodesk. – CNBC’s Michael Bloom contributed to this report.
