< The 2014 All-America Research TeamDerik de BruinBank of America Merrill LynchFirst-place appearances: 1
Total appearances: 5
Team debut: 2010Seizing second place on this roster for a third consecutive year is Bank of America Merrill Lynch’s Derik de Bruin, whose “strong science background makes him a unique asset when trying to pick winners and losers,” one portfolio manager asserts. Taking a broad view of the sector, de Bruin notes that “interest remains strong, as fundamentals appear to be slowly improving and merger and acquisition speculation remains high.” Moreover, “there is optimism that macro trends and Chinese sales will improve heading into 2015,” he adds, “and there is some hope the U.S. National Institutes of Health could see a better-than-expected budget increase next year.” De Bruin is touting FEI Co. of Hillsboro, Oregon, and the reasons for his positive stance are many. “We like FEIC for its technology leadership in electron microscopy; growing market opportunity in electronics, life and materials sciences and natural resources; margin expansion trajectory; above-average revenue growth potential; improving [free cash flow]; and a more shareholder-friendly capital deployment plan,” he explains, “as FEIC recently raised its dividend by over 100 percent and began a share buyback.” He pegs the shares at $96; in mid-September they were trading at $82.61. “Derik is extremely knowledgeable about the companies he covers and truly loves exploring the science,” insists another fan.