< The 2015 All-Europe Research Team
Christoph Gretler & team
Credit Suisse
First-place appearances: 0
Total appearances: 8
Team debut: 1999
At No. 3 for a second consecutive year is Christoph Gretler’s four-person Credit Suisse troupe in Zurich. Preferred names among the 37 Swiss stocks under the team’s coverage include Rieter Holding, a Zurich-based maker of industrial machinery for spinning mills around the world, which the analysts assign an outperform rating. They believe that Rieter is underappreciated, especially after its expansion into India and China over the past two years, and project that global customers should begin replacing ageing equipment by the middle of 2015. Further, they like the direction that chief executive Norbert Klapper has chosen for the company since taking over in January 2014, focusing on cost-cutting and other “self-help opportunities to move margins up,” explains Gretler, 46. Rieter’s stock closed last month at Sf133.30, and Credit Suisse’s researchers forecast a rise to Sf210. They also recommend that clients buy Logitech International, which develops computer and tablet peripherals. “Logitech will launch innovative new products in the coming quarters” and shift from cutting costs to expanding sales and revenue growth, the team leader says. “We believe that Logitech can revive its declining sales in tablet accessories with new products like mobile speakers, keyboard covers and accessories for smartphones.” In addition, he notes, the Lausanne-headquartered manufacturer generates strong free cash flow, and its management has a generous policy of cash distribution. Gretler and his cohorts peg Logitech’s shares at Sf17.30, which represents a 27.7 percent premium to their value at the end of January.