\n\tBy Greg Peel<\/p>\n
\n\tCredit Suisse stock analysts maintain a small cap list of favourites<\/span> which they call their “focus list” which is constituted by roughly 25 stocks for which the analysts have set an Outperform rating plus price target with the latter well above the present share price. Out of these 25 favourites<\/span>, the analysts at times highlight the ones that carry extra conviction. This week the analysts have reviewed their focus list and the top five picks from that list.<\/p>\n \n\tMoving into the top five are Alliance Aviation Services ((AQZ<\/span>)), SAI<\/span> Global ((SAI<\/span>)), and Flexigroup<\/span> ((FXL<\/span>)), and moving out are Industrea<\/span> ((IDL<\/span>)) and Virgin Australia ((VAH<\/span>)). <\/p>\n \n\tIndustrea<\/span> remains on the focus list but Virgin has been shunted out of that as well, despite the analysts maintaining an Outperform rating. It's a simple matter of a 22% share price rally suggesting better value on offer elsewhere now.<\/p>\n \n\tIn terms of the focus list itself, Credit Suisse has added three stocks and removed four.<\/p>\n \n\tIn goes IOOF<\/span> Holdings ((IFL<\/span>)) to replace Henderson Group ((HGG<\/span>)). An Outperform is retained on Henderson but the analysts prefer IOOF<\/span> for its local corporate and wealth management exposure, solid balance sheet and 7% yield.<\/p>\n \n\tIn goes SMS Management & Technology ((SMX<\/span>)) to replace Transpacific Industries ((TPI<\/span>)). An Outperform is retained on Transpacific given confidence in planned operational efficiencies but whereas the analysts can see no real near-term catalysts for TPI<\/span>, they believe SMS offers the potential to turn solid revenue growth into earnings growth through cost reductions and utilisation<\/span> improvements.<\/p>\n \n\tIn goes NRW<\/span> Holdings ((NRH<\/span>)) to replace Adelaide Brighton ((ABC)). An Outperform rating is retained on Adelaide Brighton but the analysts see better near-term value in NRW<\/span> which offers growth on industry leading margins, has little exposure to fixed price contracts, and is not expensive on a PE basis.<\/p>\n \n\tOut goes ARB<\/span> Corp ((ARP)) which has posted a solid share price performance, prompting the analysts to pull back to Neutral.<\/p>\n \n\tThe full focus list now contains financials Flexigroup<\/span> and IOOF<\/span>, commercial service\/suppliers Cabcharge<\/span> ((CAB)), McMillan Shakespeare ((MMS)), Programmed Maintenance ((PRG<\/span>)), SAI<\/span> Global and SMS Management, retailers Flight Centre ((FLT<\/span>)), Super Retail ((SUL<\/span>)), Webjet<\/span> ((WEB)) and Wotif<\/span> ((WTF)), media companies Carsales<\/span> ((CRZ<\/span>)) and Southern Cross ((SGN<\/span>)), miners and mining servicers Alliance Aviation, Bradken<\/span> ((BKN<\/span>)), Cockatoo Coal ((COK<\/span>)), Kula Gold ((KGD<\/span>)), Industrea<\/span>, Mermaid Marine ((MRM<\/span>)), NRW<\/span> Holdings, and Western Areas ((WSA<\/span>)), and utility\/logistics companies Qube<\/span> Logistics ((QUB<\/span>)), Royal Wolf ((RWH<\/span>)) and TPG<\/span> Telecom ((TPG<\/span>)).
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