Stock favorites 2022: These Swiss stocks recommend the most important banks

The tide lifts all boats. At least that's what an old stock market adage says. But contrary to what the whopping annual gain of 24 percent in the broad Swiss Performance Index (SPI) would suggest, only those who invested in real stocks made money in 2021. As in the previous year, the annual winners on the Swiss stock exchange were worlds apart from the losers.

As different as the expectations of the banks for the stock market year 2022 may be - everyone agrees on at least one point: events will probably become even more moody - and having the right individual shares in the portfolio will be even more important.

Also interesting

More Swiss stocks on Anglo-Saxon tip lists

Unlike last year, British and American banks in particular are increasingly backing stocks from Switzerland. Jefferies remains one of the few exceptions. On the US investment bank's recommendation list of 20 stocks for Europe, the SMI heavyweight Roche almost makes a somewhat lost impression. The participation certificate of the pharmaceutical and diagnostics group from Basel is advertised for sale with a price target of 435 francs.

The result is better from a Swiss perspective on Barclays' list of European favourites. For the British, shares in construction chemicals specialist Sika, chocolate producer Barry Callebaut, food multinational Nestlé and watch manufacturer Swatch Group are a must for the stock market that has just started.

We provide comprehensive stock market data and up-to-date information on investment topics on our Cash.ch page.

You can find all other episodes of "Handelzeitung Insights" here.

Swiss presence on Barclays' list of stocks to avoid over the next 12 months is only marginally smaller. These are Givaudan, Novartis and AMS.

At AMS, however, Bank of America disagrees. She lists the shares of the sensor manufacturer together with those of the world market leader Sonova and the mail-order pharmacy Zur Rose on her list of recommendations. When the list was communicated, the delays in the nationwide introduction of electronic drug prescriptions in Germany were not yet certain. This decision by the German Federal Ministry of Health has recently hit the Zur Rose share quite a bit.

Vontobel: Several old acquaintances

Experts differ not only about AMS, but also about Novartis. While Barclays and J.P. Morgan declares the heavyweight Novartis to be "share non grata", the Zürcher Kantonalbank (ZKB) even puts it on its list of recommendations. Vontobel also upgraded the Novartis share from "Hold" to "Buy" just a few weeks ago with a target price of CHF 89 (previously CHF 87) (cash Insider reported). Nevertheless, as in the previous year, Zürcher Bank sees Roche's participation certificate as the favorite.

Vontobel is going into the race with 14 favourites. A year ago there were even 16. The revised list includes some familiar names such as Roche, Swiss Re, Huber+Suhner, Logitech and Partners Group. In addition, Zürcher Bank relies on ABB, Emmi, Sonova, Komax, PSP, UBS, Sika, Givaudan and Stadler Rail.

Stadler Rail is following the same path as UBS, as the largest Swiss bank also counts the train builder's share among its favorites for the year. At this point, however, it should be mentioned that UBS was what brought Stadler Rail to the stock exchange at the time.

In the case of Givaudan, however, Vontobel contradicts the pessimistic British Barclays and in the case of Sonova Bank of America with their sell recommendation. The US investment bank has long considered the hearing aid manufacturer's stock to be grossly overvalued. At CHF 257, Bank of America's target price is well below the CHF 460 calculated by Vontobel.

ZKB relies on outsiders

UBS is also confident about Sonova. With a 12-month price target of CHF 379, it is part of “Team Vontobel”. In addition to Sonova and Stadler Rail, the big bank has also taken a liking to Georg Fischer, Oerlikon and Richemont. Richemont was already considered “the” SMI stock market high-flyer in 2021 with a price increase of 72 percent.

This year's SMI high-flyer Richemont (red) left the SMI (green) far behind in the last 12 months.

Unlike UBS, ZKB's favorites for the year don't rely on the tried and tested or on the usual. Especially in the case of small caps, the Zurich bank dances quite out of line with the hospital communication specialist Ascom, the real estate investment company Mobimo and the ventilation manufacturer Zehnder. These three stocks are not found on any other bank's list of favourites.

ZKB's SMI favorites almost seem a bit boring, as they include Alcon, Logitech, Nestlé, Novartis and SGS.

All in all, it is noticeable that the banks and their analysts have never been so divided on their share recommendations as with regard to the stock market year 2022. There are no fewer than 37 different Swiss shares on the available favorites lists, from A for ABB to O for Oerlikon to Z how to find Zur Rose. None of these titles are mentioned more than two or three times.

If, as an investor, you don't run the risk of getting bogged down.

This article first appeared on "Cash.ch" under the title: "Swiss share tips for 2022: The banks have never been so divided".