Top Picks Credit Suisse Top Investment Ideas November 4, 2015 Research Analysts Credit Suisse US Equity Research 877 291 2683 [email protected] Credit Suisse Global Product Marketing 212 538 4442 [email protected] Arbin Sherchan, CFA 212 325 8967 [email protected] Lori Calvasina 212 538 6396 [email protected]

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-U.S ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS 

BEYOND INFORMATION™ Client-Driven Solutions, Insights and Access

Top Picks Methodology

 ‘One-stop shop’ for the research team ’s best ideas. Every research analyst identifies and ranks up to 3 top stock picks based on a 6-12 month time horizon.

 Highlighting only high conviction ideas. In an effort to limit the list to our strongest ideas, analysts were allowed to submit fewer than 3 stocks.

 Bonus sm all-cap pick: Analysts who do not list a name under $4.3 billion in market cap were given the opportunity to add a “bonus small-cap pick.”

 Investm ent thesis: For each name, we include a short summary of our analyst’s thesis as a starting point for further analysis. Results

 119 top ideas: The exercise resulted in a list of 119 top stock ideas, representing ~13% of the over 900 names covered by US analysts.

 Ideas Across The Market Cap Spectrum : Out of the 119 names highlighted, 23 are small cap (under $4.3 billion), 49 are SMID cap (under $10.2 billion), and 72 are mid cap ($2.4-28.7 billion). A list of small caps can be found on page 55 and are also included in the sector tables throughout the report.

 These should not be viewed as portfolios; they are simply a current snapshot of the analysts’ top picks in their coverage universes.

Slide 1

Table of Contents Section

Page

Summary of Top Picks

3

Top Picks By Size & Style

6

Top Picks By Sector Basic Materials

8

Consumer

10

Energy & Utilities

20

Financials

29

Health Care

39

Industrials

42

Services

48

Technology

49

Top Picks in Small Cap

55

Valuation Table

56

Slide 2

Sum m ary of Top Picks

Click here for previous edition, 10/1/15 Bonus Small Cap Pick

Removals

Bonus Small Cap Pick

Removals

BASIC MATERIALS

Analyst

#1

#2

#3

Ag Science

Chris Parkinson

CF

MON

AGU

Chemicals

John McNulty

CE

ASH

SEE

CONSUMER

Analyst

#1

#2

#3

Apparel, Footwear & Softlines

Christian Buss

HBI

PVH

LB

Autos & Auto Parts

Dan Galves

MGA

TSLA

DLPH

Gaming & Lodging

Joel Simkins

SIX

MAR

MTN

Homebuilding & Building Products

Mike Dahl

CSTE

MHK

TOL

Media & Entertainment

Omar Sheikh

TWX

CBS

MANU

Packaged Food

Rob Moskow

SJM

MDLZ

PF

Retail: Broadlines & Dept. Stores

Michael Exstein

Retail: Food & Drug

Ed Kelly

DG

SYY

CVS

Retail: Hardlines

Seth Sigman

HD

LOW

SPWH

CAB

Restaurants

Jason West

MCD

PNRA

DRI

DNKN

ENERGY / UTILITIES

Analyst

#1

#2

#3

Alternative Energy

Patrick Jobin

SCTY

RUN

JKS

Independent Refiners

Ed Westlake

MPC

Integrated Oil & Gas

Ed Westlake

MRO

MLP's

John Edwards / Bhavesh Lodaya

GEL

Oil & Gas Exploration & Production

Ed Westlake / Mark Lear

DVN

Oil Services & Equipment

James Wicklund

WFT

FI

Oilfield Services & Marine Transport

Greg Lewis

EURN

STNG

New Top Pick

COST

Stock Moved Up in Rank

WMT

Bonus Small Cap Pick

Removals

TSO

EQM

SEP

Stock Moved Down in Rank

TEP

Slide 3

Sum m ary of Top Picks

Click here for previous edition, 10/1/15 Bonus Small Cap Pick

Removals

Bonus Small Cap Pick

Removals

ENERGY / UTILITIES

Analyst

#1

#2

#3

SMID Cap Oil & Gas Exploration & Production

Mark Lear

PDCE

FANG

GPOR

Utilities

Dan Eggers

EXC

PNW

NEE

FINANCIALS

Analyst

#1

#2

#3

Asset Managers

Craig Siegenthaler

AMG

Banks – Large Cap

Susan Roth Katzke

JPM

BAC

WFC

Banks – Mid Cap

Jill Shea

KEY

BBT

ZION

Brokers, Exchanges & Alternative Asset Managers

Christian Bolu

SCHW

GS

RJF

Insurance - FG & Life

Tom Gallagher

MET

Insurance - P&C

Ryan Tunis

ALL

ACE

XL

Mortgage REITs

Doug Harter

NSM

NRZ

PMT

TWO

REITs

Ian Weissman / George Auerbach

GGP

HPP

BXP

SPG, LHO

Specialty Finance

Moshe Orenbuch

DFS

V

Trust Banks, M&A Advisors & Market Technology

Ashley Serrao

ITG

LAZ

HEALTH CARE

Analyst

#1

#2

#3

Health Care Distribution & IT

Glen Santangelo

MCK

LH

PRXL

Life Sciences & Tools

Vamil Divan

Medical Supplies & Devices

Matt Keeler

BSX

Pharmaceuticals

Vamil Divan

PFE

New Top Pick

ICE

NDAQ

Bonus Small Cap Pick

Removals

ILMN

Stock Moved Up in Rank

BMY

LLY

Stock Moved Down in Rank

AABV

Slide 4

Sum m ary of Top Picks INDUSTRIALS

Analyst

Aerospace & Defense

Click here for previous edition, 10/1/15 Bonus Small Cap Pick

#1

#2

#3

Rob Spingarn

BEAV

LLL

OA

Airfreight & Ground Transport

Allison Landry

CP

UNP

JBHT

Airlines

Julie Yates

LUV

DAL

Electrical Equip. & Multi-Industry

Julian Mitchell

GE

MMM

Engineering & Construction

Jamie Cook

KBR

Machinery

Jamie Cook

DE

ALSN

CAT

SERVICES

Analyst

#1

#2

#3

Business & Professional Services

Anjaneya Singh

IT

NLSN

CAR

TECHNOLOGY

Analyst

#1

#2

#3

Internet

Stephen Ju

FB

AMZN

GOOGL

Semiconductors

John Pitzer

ADI

INTC

MU

ON

Semiconductor Equipment

Farhan Ahmad

LRCX

Software

Phil Winslow

ADSK

DATA

MSFT

VMW

SMID Cap Software

Michael Nemeroff

TWOU

SNCR

ULTI

Tech Hardware / Telecom Equip.

Kulbinder Garcha

HPQ

AAPL

ANET

New Top Pick

Stock Moved Up in Rank

Removals

JBLU IR ACM, FLR

Stock Moved Down in Rank

MTW

Bonus Small Cap Pick

Removals

Bonus Small Cap Pick

Removals

Slide 5

Top Picks By Siz e & Style Small Cap (4.3B, $28.7B)*

ASH, CE, CF, SEE

MON

Consumer

MTN, SPWH

CBS, DG, DLPH, DRI, HBI, MAR, MHK, PNRA, SIX, SYY, TOL, TSLA

COST, CVS, HD, LB, LOW, MCD, TWX

Energy/Utilities

RUN, SCTY

Growth Stocks Basic Materials

Financials Health Care

ITG

AMG, BXP, LAZ

SCHW, V

PRXL

BSX, LH

BMY, LLY, MCK

ALSN, BEAV, DE, IR, JBHT

CAT, DAL, LUV, MMM, UNP

Industrials Services Technology

MPC

CAR, IT, NLSN ANET, SNCR, TWOU

ADI, ADSK, DATA, LRCX, MU, ULTI

AAPL, GOOGL, INTC, MSFT

PF, PVH, SJM

MDLZ

FI, GPOR, PDCE, STNG

DVN, EXC, FANG, MRO, PNW, WFT

NEE

HPP, NRZ, NSM, PMT

ALL, DFS, GGP, KEY, RJF, XL, ZION

ACE, BAC, BBT, GS, JPM, MET

Value Stocks Basic Materials Consumer Energy/Utilities Financials Health Care Industrials

PFE KBR

LLL, OA

Services Technology

HPQ

* Note: Market Cap cut offs are based on Russell classifications.

Slide 6

Top Picks by Sector / Industry Symbols: New Top Pick since last publication Company has been upgraded in rank since last publication Company has been downgraded in rank since last publication

Chris Parkinson

Basic Materials Ag Sciences Rank

Company

[email protected] (212) 538-6286 Pricing Price: $52.35

1

CF Industries Holding Inc. (CF)

Target: $70.00 Mkt Cap: $12.2B Price: $93.15

2

Monsanto Company (MON)

Target: $109.00 Mkt Cap: $41.0B

Rationale

We believe CF will further improve its industry positioning over the next 2-3 years and generate best-in-class free cash flow versus peers. While we believe nitrogen prices have moderated slightly on a yr/yr basis in '15, in our view this trend is well within market expectations and note even with materially lower pricing CF still has the ability to generate ~$32-$33/share of FCF in '17.

MON remains positioned to benefit from opportunities to enhance long-term profitability on the back of higher margin product launches and further product penetration (i.e.- Intacta soybeans) in addition to portfolio upgrades. Increased biotech acres in S. America with stacked traits and the potential for further expansion into E. Europe via MON's hybrid seed portfolio should drive increased revenue and higher margins. While 2015 growth will likely be below the historical average, we remain confident in a reacceleration in 2016.

Price: $94.23 3

Agrium Inc. (AGU)

Target: $110.00

We remain optimistic regarding the retail segment's potential to optimize its store footprint and further benefit from operating leverage. Private label sales should also continue to benefit segment margins. Within wholesale, favorable N. American nitrogen economics should provide some offset to the declines in the global potash market.

Mkt Cap: $13.5B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

8

John McNulty

Basic Materials Chemicals Rank

Company

[email protected] (212) 325-4385 Pricing

Price: $71.76 1

Celanese Corporation (CE)

Target: $80.00 Mkt Cap: $10.5B

Price: $110.95 2

Ashland Inc. (ASH)

Target: $153.00 Mkt Cap: $7.5B

Price: $49.84 3

Sealed Air Corp. (SEE)

Target: $63.00 Mkt Cap: $10.3B

Rationale

CE is our top pick as we believe that the street is not fully appreciating the earnings power of CE and that coupled with a cheap valuation and mgmt's admitted focus on creating opportunities to drive value for shareholders (we believe including the potential splitting of CE), there are a number of ways CE can outperform the broader group over the next 12 months. CE is our favorite pick in the Chemicals sector and our price target is $80- 8.5X 2016 EBITDA.

ASH is our second favorite pick in the Chemicals space as we remain convinced that the story is on track with cash likely getting returned to shareholders in a meaningful way and portfolio management will continue while business trends remain mixed. With the recent announcement of the Valvoline spin, we looked at the value of each business and can now point to a sum of the parts that gets us to ~$153 looking out over the next 12-18 months. Their upcoming investor day in November could be a catalyst as it should provide more color surrounding the growth opportunities in each business. SEE is currently our third favorite pick in the space. Given the significant cash flow generation SEE should realize over the next 12-24 months (that we expect to be returned to shareholders--with as much as 15-19pct of the mkt cap likely returned from now through 2016) as well as an acceleration in some of their volumes (specifically in meat packaging) and the raw material tailwinds, we believe SEE has the potential to drive solidly higher over the next 12 months. At our Basic Materials conference management cautioned investors of larger than expected FX headwinds although reiterated their EPS guidance due to their aggressive buybacks (9.5 mil shares, or ~$475 mil, in 3Q as of 9/11).

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

9

Christian Buss

Consumer Apparel & Footwear Rank

Company

Pricing

[email protected] (212) 325-9667 Rationale

Price: $32.71

1

Hanesbrands Inc. (HBI)

Target: $40.00

Strong and steady free cash flow generator with opportunity to catalyze EPS growth via acquisitions and mix shift towards premium priced products.

Mkt Cap: $12.8B Price: $92.18 2

Phillips-Van Heusen (PVH)

Target: $134.00 Mkt Cap: $7.6B

We believe Calvin and Tommy brands remain healthy and are gaining traction at retail with the global consumer. Core business is positioned to grow at a sustained low to mid-single digit rate, helping drive leverage of fixed investments and double-digit earnings growth. With currency headwinds likely to moderate over time, we believe that the company is on track to return to 10-15% earnings growth.

Price: $96.45 3

L Brands, Inc. (LB)

Target: $94.00

We are encouraged by comp momentum, spending controls and improved inventory management.

Mkt Cap: $28.0B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

10

Dan Galves

Consumer Autos & Auto Parts Rank

Company

Pricing

Price: $53.49 1

Magna International (MGA)

Target: $60.00 Mkt Cap: $21.7B

Price: $213.79 2

Tesla Motors Inc. (TSLA)

Target: $325.00 Mkt Cap: $27.7B

Price: $84.42 3

DELPHI Automotive PLC (DLPH)

Target: $92.00 Mkt Cap: $23.6B

[email protected] (212) 325-9274 Rationale Key Positives: 1) Strong Market Position: One of the largest global auto component suppliers...#1 or #2 positions in each core product area makes MGA a key beneficiary of increasing vehicle globalization. 2) Self-Help: Move from current 3% Europe margin to ~4.5% in 2016 is a powerful earnings growth driver on 40% of the business. 3) Healthy Organic Growth Potential: Even under more conservative assumptions, MGA can generate organic growth of ~6%/yr in’16 and ’17 (vs industry production of 2%-3%), enough to drive ~30-40 bps to annual margin expansion. 4) Strong cash returns: Based on our estimates, we think MGA can generate ~$1.1-$1.4 bln/yr, which the company will return to shareholders (mgmt was constrained on repurchases in 2015 due acquisitions / divestitures activity). Bottom-Line: With an excellent management team and under-appreciated benefits from vehicle globalization, we have confidence in Magna's 2017 revenue and margin targets. These imply potential for >$6.00 EPS in '17, ~15% per year growth. This should support stock price in the $60 range 12 months from now, implying 15% upside from current levels. We believe that Electric Vehicles have inherent advantages vs internal combustion vehicles and will be disruptive to the $1 trillion+ new vehicle industry (slowly, over a long period of time). Tesla has significant competitive advantages that we believe are sustainable. We see major battery cost reductions as highly probable and leading to near costparity to internal combustion veh’s by 2017, while still offering ~$2k per year in fuel savings to the customer, which can either drop to margin or be used to drive share. Sentiment on demand remains very weak…if Tesla hits their volume targets for this year this will answer a lot of questions…and with Model X launching late 2015 (doubles the addressable market) and another 12 months for Tesla to lay groundwork in China, we think 2016 sets up as a tremendous year and the stock could approach our $290 price target by the end of 2015. Recent substantial improvements to the Tesla vehicle lineup will lead to incremental demand and makes us more confident in Tesla's ability to hit 2015 volume guidance. Delphi has strong exposure to key secular trends in vehicle emissions, active safety, and connectivity. Excellent mgmt team that has expanded margins even under challenging top-line conditions and is committed to shareholder returns. Recent acquisition activity is positive over the short-term (Hellerman-Tyton is immediately accretive to revenue growth, margin, and EPS), long-term (DLPH made a number of investments into very promising software players that improve their position in auto mega-trends of fuel economy and autonomous drive), and shouldn't impact the buyback pace. And we have confidence that long-awaited organic growth inflection point is under way, with all 3 divisions poised to accelerate in 2H15. We see the potential for >$7.00 of EPS in 2017 which could support a share price in the $105 range, discounted back one year we see upside to $92 on a 12-month view.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

11

Joel Simkins

Consumer Gaming & Lodging Rank

1

Company

Six Flags Entertainment Corp. (SIX)

Pricing

Price: $51.87 Target: $59.00 Mkt Cap: $4.8B

Price: $77.46 2

Marriott International (MAR)

Target: $90.00 Mkt Cap: $19.9B

[email protected] (212) 325-5380

Rationale

4% dividend, leader in theme park industry with regards to innovation and brand quality, strongest management team. We believe SIX will be able to capitalize on their pricing power over the next few years, driven by their improved ticket pricing strategy. SIX could also see upside from attendance growth in 2015, as it continues to increase its active pass base. Further, we believe there is incremental upside from international deals that is not priced into the Street's estimates.

Because of its compelling total return profile, leading brands / rewards system and upside to North American incentive fees, MAR is one of the most compelling name in the gaming, leisure and lodging group. Despite the recent noise around Airbnb and the threat of other economy sharing lodging alternatives, which could have an industry-wide impact, we believe the industry remains well-positioned to achieve mid-single digit RevPAR growth in 2015, while supply growth still remains tame versus historical trends.

Price: $115.30 3

Vail Resorts (MTN)

Target: $130.00

MTN continues to build off of their robust pricing power and focus on margin improvement. We see potential upside from the integration of PCMR/Canyons (will be fully integrated next year), as well as their capital allocation strategy.

Mkt Cap: $4.2B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

12

Consumer Homebuilding & Building Products Rank

Company

Pricing Price: $36.41

1

Caesarstone Sdot-Yam Ltd. (CSTE)

Target: $62.00 Mkt Cap: $1.3B

Price: $198.32 2

Mohawk Industries (MHK)

Target: $230.00

Mkt Cap: $14.7B

Price: $36.25 3

Toll Brothers (TOL)

Target: $42.00 Mkt Cap: $6.5B

Mike Dahl [email protected] (212) 325 5882

Rationale

We expect significant revenue and EBITDA growth over the next several years driven by share gains for engineered quartz countertops and for CSTE specifically within the category, given its significant US manufacturing capacity expansion and increasing brand recognition. Additionally, this should be supported by continued improvement in home sales and prices, which should lift home improvement spend (90% of end market exposure).

We see MHK’s dominant share in both carpet and tile as likely leading to better pricing power over time and combined with management’s continued execution on cost control and tailwinds from lower petroleum-based inputs, we expect continued improvement in operating margins. Incremental upside from synergies related to the announced acquisition of IVC Group (vinyl, LVT, and laminate producer in the US and Europe) and further acquisitions is possible with stillsubstantial balance sheet capacity and solid FCF.

We believe that the Street is underappreciating the earnings contribution of TOL's City Living tower business in '16 and '17. Combined with its deep land position, seen solid California demand trends, and a buyer demographic likely more insulated from higher interest rates, we think TOL is well positioned and the stock has a favorable setup heading into 2H and 2016.

Note: CSTE moved to #1 (from #2). MHK moved to #2 (from #1).

Source: Credit Suisse; Data as of 2-Nov-15

13

Omar Sheikh

Consumer Media & Entertainment Rank

Company

Pricing Price: $76.56

1

Time Warner Inc. (TWX)

Target: $100.00 Mkt Cap: $62.4B Price: $47.87

2

CBS Corporation (CBS)

Target: $75.00 Mkt Cap: $23.3B

Price: $18.06 3

Manchester United Plc (MANU)

Target: $23.00 Mkt Cap: $1.9B

[email protected] (212) 325-6818 Rationale We are bullish on Time Warner given (1) as a pure-play content owner, it is structurally well-positioned as consumption of video content migrates online and new opportunities to monetize emerge; (2) the roll-out of HBO NOW should tap new demand for the product and could boost HBO EBITDA by $1.2bn, or nearly 35%, by 2020; (3) Turner screens well on our proprietary genre analysis, and we remain bullish on the company's ability to grow affiliate fees long term; and (4) if we were to strip out HBO at valuations of $30bn-$35bn, the rest of Time Warner is currently trading at significant discounts to Disney and Fox. We are bullish on CBS given (1) superior positioning, given limited exposure to generalist cable networks; (2) our sanguine view on advertising, where we think modest growth is likely in 2H15 offsetting the declines in 1h15, and where we do not see a material long term shift from TV to digital; (3) the significant growth opportunity in content licensing, driven by CBS' strong slate of drama content; and (4) an undemanding valuation, where the 12m forward PE multiple is at the low end of the recent trading range. We are bullish on MANU for the following reasons: 1) The Club controls live sports content from one of the most successful soccer teams in the world. We see long term structural growth opportunities for sports content owners as consumption moves from traditional platforms to online platforms; 2) The Club is well-placed to benefit from the growing popularity of soccer globally. This will help drive commercial and broadcasting income, particularly from the US and Asia; 3) We are particularly bullish on the growth potential of commercial income, driven by the exploitation of the Club's brand in retail and e-commerce, which we believe can grow significantly over the long term, thanks to a less restrictive sponsorship agreement with Adidas; 4) We believe the valuation looks compelling, with the shares trading at ~13x 2016 EV/EBITDA, vs EBITDA CAGR of 13% 2014-2020E.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

14

Rob Moskow

Consumer Packaged Food Rank

Company

[email protected] (212) 538-3095 Pricing

Price: $117.42

1

J.M. Smucker Co. (SJM)

Target: $133.00 Mkt Cap: $14.1B Price: $46.44

2

Mondelez (MDLZ)

Target: $52.00 Mkt Cap: $75.7B Price: $43.62

3

Pinnacle Foods Inc. (PF)

Target: $50.00 Mkt Cap: $5.1B

Rationale The company’s strong organic growth performance this year will be driven by the launch of Dunkin’ k-cups, expanding its presence in PetSmart, and lapping easy comparison for the Folgers brand. In addition, management said there is incremental upside to its $200M synergy target, but stopped short of providing further details. Our benchmarking suggests that if management can right-size the overhead expenses, it can boost EPS to $7.61 by FY18 and get the stock to $152 in just short of two years. With its strong emerging market platform (44% of sales) and excellent brands (Oreo, Cadbury, Trident), Mondelez is a key beneficiary of the consumer trend toward snacking in emerging markets. We think the appointment of Nelson Peltz to the Board will lead to better execution by current management and an improvement in operating margins to 15-16% in 2016 and higher in subsequent years. The recent divestiture of the coffee business is a good example of how we expect Peltz will continue to drive value creation for shareholders.

Despite an increasingly volatile environment, the company has delivered remarkably consistent performance since its IPO in 2013. We think it makes sense to give the management team credit in advance for making value creating acquisitions. In addition, we believe that Pinnacle merits a valuation premium for the probability that ConAgra will make a possible bid for it after ConAgra restructures its portfolio.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

15

Consumer Retail: Broadlines & Department Stores Rank

Company

Pricing

Michael Exstein [email protected] (212) 325-4147

Rationale

Price: $159.15 1

Costco Wholesale Corporation (COST)

Target: $165.00

COST remains one of the few conventional retailers that continues to deliver positive traffic, market share gains, and a validated model for international expansion. Furthermore, their business model appears largely shielded from the margin erosion from e-commerce impacting most retailers.

Mkt Cap: $69.6B

Note: Removed WMT (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

16

Ed Kelly

Consumer Retail: Food & Drug Rank

Company

Pricing Price: $68.74

1

Dollar General (DG)

Target: $84.00 Mkt Cap: $20.3B Price: $41.04

2

Sysco Corporation (SYY)

Target: $45.00 Mkt Cap: $24.5B

[email protected] (212) 325-3241 Rationale DG represents one of the most attractive investments in staples retail. The improving low-income consumer, internal initiatives, and easing comparisons should drive solid comparable store sales performance, square footage growth is accelerating, and the margin outlook has improved. An aggressive share repurchase strategy and recent dividend initiation only enhance the growth profile. Valuation remains attractive, especially relative to lower growth staples peers. We see underappreciated opportunity in the stock as recent activist involvement could be the catalyst for muchneeded strategic change. After five years of failing to grow EBITDA, SYY now appears to be more focused on profitable growth and could unlock significant upside through incremental leveraged share repurchases, larger cost cuts, and improved capital efficiency. Overall, we believe that this industry leading franchise is under-earning and that strong upside exists with a more aggressive shift in strategy, while downside is limited under the status quo.

Price: $100.38 3

CVS Health (CVS)

Target: $120.00

CVS remains an attractive investment idea in our view, given upcoming industry catalysts (the next generic wave and increased utilization/share gains associated with ACA), the recently announced procurement JV with CAH, its winning long-term model that focuses on traffic gains, strong cash flows, and attractive valuation.

Mkt Cap: $111.2B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

17

Seth Sigman

Consumer Retail: Hardlines Rank

1

Company

Home Depot (HD)

Pricing

Lowe's (LOW)

Target: $80.00 Mkt Cap: $68.3B

3

Sportsman's Warehouse Holdings, Inc. (SPWH)

Rationale

We view HD as a best-in-class retailer with a strong management team that participates in one of the strongest segments of retail, marked by oligopoly pricing, reduced supply, and relative insulation from e-commerce. From a Price: $124.41 macro standpoint, we expect better housing turnover, a recovery in pent-up remodel work and product replacement in home products, appliances, and furnishings, and gradual improvements in household formation, a key variable that Target: $135.00 could add 50-100 bps to comp growth. HD also stands to benefit from the ongoing erosion of SHLD's retail business in appliances and tools. Lastly, internal opportunities include the company's focus on the Pro, increasing vendor Mkt Cap: $159.8B collaboration, and additional supply chain improvements, which position HD well for higher sales productivity. Combined with share buybacks, which have been growing at a 5% CAGR, we expect double-digit earnings growth to continue despite limited square footage growth opportunities.

Price: $73.77 2

[email protected] (212) 538-8043

Price: $10.74 Target: $13.00 Mkt Cap: $0.5B

LOW participates in one of the strongest segments of retail, with elements of oligopolistic pricing, reduced supply, and is somewhat sheltered from the e-commerce impacts seen elsewhere. From a macro viewpoint, the home improvement industry is enjoying the benefits of a robust housing market recovery with pent-up demand for remodeling projects and product replacements supporting the groups’ mid-single digit comps outlook. From a company specific standpoint, we remain encouraged by the strategic direction of the company as they strive to enhance the customer experience and improve asset productivity to deliver managements’ growth targets. These internal measures are being supported by an improvement in the groups store base footprint, which has seen a slightly stronger housing market recovery, post-recession, than its key competitor HD, allowing for a narrowing of the comp gap between these two names. With better visibility on the near term and medium-term outlook, including the company’s ability to sustain ~4% comps over time, hit the required 2H15 EBIT margin expansion and to achieve an 11% EBIT margin by 2017, coupled with the stocks YTD decline, we view LOW as an attractive investment within large cap discretionary retail.

We view SPWH as one of our most interesting small cap ideas, based on the recovery opportunity this year, the compelling store growth opportunity for this company's unique store model, and attractive valuation at just 12.5x our 2016 EPS estimate (with upside as comps go positive). Despite elevated promotions across the industry, SPWH continues to gain share in a high fragmented sector. We believe SPWH has been successful in finding smaller markets where its unique, low cost model can earn strong returns but protects it from larger competition, which is important given the aggressive store growth in the industry.

Note: LOW is new #2 Top Pick. SPWH is new #3 Top Pick. Removed CAB (Downgraded to Neutral).

Source: Credit Suisse; Data as of 2-Nov-15

18

Jason West

Consumer Restaurants Rank

1

Company

McDonald's Corp (MCD)

[email protected] (617) 556-5745 Pricing

MCD's healthy 3Q beat suggests CEO Easterbrook's recovery plan is beginning to gain traction. While shares are not cheap relative to history, we still see room for upside on SSS momentum, SG&A savings and incremental leveraged buybacks. US SSS are beginning to show signs of momentum. MCD's sales gap to QSR peers narrowed to -3.2% in Price: $112.11 3Q from ~6% over the past 4 quarters. We expect this momentum to continue, driven by the recent rollout of all-day breakfast and implementation of a national value platform in 2016. MCD has guided to $300mm in SG&A reductions Target: $118.00 by 2017. We believe the company is making significant progress on the cost-cutting goal and could achieve these savings earlier than expected. Even under our bull case for SG&A cuts, MCD would be spending $59k in SG&A per Mkt Cap: $107.5B system restaurant in 2016. This remains well above other franchised peers (~$30k per restaurant, on average). While MCD has a goal of remaining solidly investment grade, we believe MCD could add ~0.5x leverage in 2016 while still maintaining a solid IG profile. This could be ~10c accretive to 2016 EPS (assuming early 2016 debt issuance).

Price: $180.41 2

Panera Bread Company (PNRA)

Target: $215.00 Mkt Cap: $4.5B

Price: $62.66 3

Darden Restaurants, Inc (DRI)

Rationale

Target: $77.00 Mkt Cap: $8.0B

While both bulls and bears came away from 3Q earnings with fuel for their argument, we remain in the bull camp. Sales trends are improving and we continue to be fans of PNRA's long-term positioning in the restaurant industry as a fast casual segment leader. Catering (~8% of sales) and delivery are potential add-on opportunities and the ongoing presence of an activist shareholder on the registry should continue to support the share price. While margin and EPS flow-through will be slow to materialize due to wage inflation and remaining 2.0 conversions (~300 expected in 2016), we believe the story is setting up for a powerful earnings recovery in 2017 and beyond.

DRI remains one of the best "optionality" stocks in our coverage, with several avenues to value creation: REIT spin, cost savings, share buybacks, Olive Garden SSS recovery and lower beef costs. The possibility also exists for other strategic actions, such as brand separations/spins and franchising. We continue to see significant EPS upside from the burgeoning turnaround at Olive Garden and highlight that the sales gap to industry benchmarks has tightened in recent quarters. We note that part of the turnaround plan at OG involves more efficient use of the marketing budget and a more thoughtful approach to discounting. These changes are driving improved profitability but come at the expense of some customer traffic.

Note: MCD is new #1 Top Pick. Removed DNKN (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

19

Patrick Jobin

Energy & Utilities Alternative Energy Rank

Company

Pricing

Price: $29.44 1

SolarCity (SCTY)

Target: $90.00 Mkt Cap: $2.9B

Price: $7.36 2

Sunrun (RUN)

Target: $20.00 Mkt Cap: $0.7B

Price: $26.69 3

Jinko Solar (JKS)

Target: $45.00 Mkt Cap: $0.8B

[email protected] (212) 325-0843 Rationale

SolarCity is the leader in the US residential solar leasing/PPA market with a 36% market share. The company is a key beneficiary of two trends in solar – lower solar costs making it a viable resource in more markets (residential solar system costs have fallen 40% in four years) and the ability to lower the cost of capital through financing vehicles. Demand is robust with Q2 bookings up 81% y/y and guidance of 91% installation growth in 2015. We estimate 32 states are economic solar adopters today and the market is less than 1% penetrated. We arrive at a $105 base-case valuation (~170% upside) based on a DCF that conservatively embeds slowing growth and reduced returns over time.

Sunrun is the third largest US residential solar installer with 9% market share. The company has a differentiated multichannel strategy with 1) a direct-to-customer channel and direct installation business, 2) a partner network of lead generators, distributors, and installers, and 3) strategic partners looking to leverage existing partnerships and brand power on the Sunrun platform. Sunrun is also unique by utilizing a customized pricing approach, enabling the company to focus on earning above-average returns, all else equal, instead of approaching each market with a fixed price for solar energy. Demand is robust with Q2 deployments up 76% y/y and guidance of 76% deployment growth in 2015. We arrive at a $20 valuation (117% upside) based on a DCF that conservatively embeds slowing growth and reduced returns over time and a 50% discount to fundamental value.

Jinko Solar remains our top stock pick in the upstream manufacturing space given their cost leadership in manufacturing, proven downstream execution capabilities, relative valuation and nearing opportunity to leverage a YieldCo/Growth IPP structure. The company has also opened a new plant in Malaysia, which allows a more flexible manufacturing base to optimize trade flows given import duties into the US.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

20

Ed Westlake

Energy & Utilities Independent Refining Rank

Company

Pricing Price: $52.92

1

Marathon (MPC)

Target: $70.00 Mkt Cap: $28.2B

[email protected] (212) 325-6751 Rationale Self-help is meaningful across all divisions and is still growing. MPC clearly signaled that there would be additional opportunities to capture at the large Galveston Bay refinery, Hess retail synergies are exceeding plans and the leading integrated system 'East of the Rockies' has plenty of bolt on logistics opportunities before we even consider the "Pac-Man " acquisition of MWE by MPLX. Getting MWE into the Marathon fold is the likely catalyst that investors are waiting for, but this may require some sweetening given the fall in implied offer price since the deal was announced.

Note: Removed TSO (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

21

Ed Westlake

Energy & Utilities Integrated Oil & Gas Rank

Company

Pricing Price: $19.01

1

Marathon Oil Corp (MRO)

Target: $25.00 Mkt Cap: $12.9B

[email protected] (212) 325-6751 Rationale MRO should become increasingly free cashflow positive as the Eagle Ford production grows. The international business is already free cashflow positive with or without Europe. The Bakken/SCOOP will eventually be free cashflow positive also (assuming oil price recovery). MRO has taken its licks with peers in the downturn. However, MRO has higher multiple businesses within it (Eagle Ford, EG LNG, AOSP) and MRO’s upstream cash margins have room to rise as shale production rises and the oil price recovers. As such, the stock is trading at an attractive discount to NAV relative to peers.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

22

John Edwards / Bhavesh Lodaya

Energy & Utilities MLP's Rank

Company

[email protected] / [email protected] (713) 890-1594 / (212) 325-2337 Pricing

Price: $41.09 1

Genesis Energy, LP (GEL)

Target: $68.00 Mkt Cap: $4.5B

Price: $74.02 2

EQT Midstream Partners, LP (EQM)

Target: $109.00 Mkt Cap: $5.4B

Price: $42.98 3

Spectra Energy Partners, LP (SEP)

Target: $61.00 Mkt Cap: $12.9B

Rationale Both defensive in terms of low direct commodity price risk and offensive in terms of visibility to distribution growth via high expected distribution coverage over the next 3-4 years as a result of the acquisition of offshore assets from EPD a few weeks ago. That acquisition was approximately 25-30% accretive to DCF providing visibility to distribution growth the next few years. The risk is that GEL does not provide guidance on project back log, is exposed to some volumetric risk in the low commodity price environment and is on the smaller side (about $5B mkt cap), offset by minimum volume commitments and the lack of capital investment required to sustain ~10% distribution growth at least the next 4 years. GEL has the added advantage of no IDRs. Distribution growth at EQM will be driven by the $3Bn+ organic project backlog in the most advantaged areas of the northeast, that are underpinned by long-term contracts. EQM will also be the direct beneficiary of EQT’s dry gas well development in the Utica. Its healthy, investment grade balance sheet with current leverage of under 2x and a forecasted LT leverage of under 3x, makes project financing easier. EQM is targeting a 20% annual distribution growth through 2017. We remain confident of EQM’s double-digit distribution growth prospects in the 2018 and beyond timeframe as its projects are placed in service. Spectra Energy Partners has one of the most visible slates of opportunities of any midstream player. The question is not of whether they have sufficient opportunities but one of having so many, how to prioritize management time and resources so as to produce the strongest return for unit holders. Management remains committed to investing $35B of projects for the 2013-2020 time frame ("Drive to 35"). $8.2B of projects are in-service and another $9.6B are in execution so they are ~½ way to the finish line, an already impressive accomplishment. Moreover average remaining contract term on operating assets is ~9 years and EBITDA growth by 2020 is projected by management to be an incremental $800mm at SEP.

Price: $44.54 4

Tallgrass Energy Partners, L.P. (TEP)

Target: $68.00

Bonus Small Cap Pick Low commodity exposure and high growth visibility the next few years offset by REX contract roll off risk which could hamper some of its drop down potential beyond 2018.

Mkt Cap: $2.7B

Note: EQM is new #2 Top Pick. SEP is new #3 Top Pick. TEP moved to Bonus Small Cap Pick (from #2).

Source: Credit Suisse; Data as of 2-Nov-15

23

Energy & Utilities Oil & Gas Exploration & Production Rank

Company

Pricing

Price: $43.13 1

Devon Energy Corp (DVN)

Target: $62.00 Mkt Cap: $18.2B

Ed Westlake / Mark Lear [email protected] / [email protected] (212) 325-6751 / (212) 538-0239

Rationale Within the context of a cautious near-term outlook for E&Ps given oil price risk through 1H15, we believe DVN is well positioned to Outperform given its defensive valuation, top quartile oil growth profile, and further accretion potential from EnLink. We believe that DVN is at an operational tipping point for the stock, with improving results in the Permian and Cana, plus significant CF from its Eagle Ford, Jackfish, and Barnett Shale assets. The key part of our favorable investment thesis on DVN hinges in our non-consensus view that there is a Concho Resources (CXO) lurking within DVN. CXO has been one of the industry leaders in value creation and sports an EV of $17 billion and DVN has a similar acreage footprint to CXO, has grown at comparable levels, and exhibited slighter better capital efficiency.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

24

Energy & Utilities Oil Services & Equipment Rank

Company

Pricing

Price: $10.69 1

Weatherford International, Inc. (WFT)

Target: $13.00 Mkt Cap: $8.3B

James Wicklund [email protected] (214) 979-4111

Rationale

The CFO continues to implement and push metrics on support ratios, asset impairment, reductions in manufacturing and facilities locations, with ~20% of global headcount cut and >$1bn in annualized cost savings, W.C. generated, inventories reduced, debt paid down, lawsuits settled; a plethora of long overdue actions and events now being implemented. 2Q15 results give us increased confidence in management’s likelihood of honest, accurate, knowledgeable abilities to deliver on promises.

Price: $17.22 2

Frank's International (FI)

Target: $18.00

FI has been one of our only two absolute Outperforms all year. Self-help improvements with a good underlying business can dramatically mitigate cyclical declines. For Frank's, they are very close to a bottom, which for them is 35%+ Ebitda margins. With no debt. An excellent base off which to “recover.”

Mkt Cap: $2.7B

Note: WFT moved to #1 (from #2). FI moved to #2 (from #1).

Source: Credit Suisse; Data as of 2-Nov-15

25

Energy & Utilities Oilfield Services & Marine Transport Rank

Company

Pricing Price: $15.06

1

Euronav NV (EURN)

Target: $20.00 Mkt Cap: $2.4B

Greg Lewis [email protected] (212) 325-6418

Rationale

EURN's position as a dominate VLCC and Suezmax spot player makes it the beta crude tanker stock for the tanker market up cycle. In addition, with a net debt to capital of 33%, EURN is moderately leveraged, which should provide management with ample flexibility for fleet acquisitions and to return cash shareholders in an up-cycle (where we are). EURN expects to pay out 80% of net income as dividends (6% 2015 yield).

Price: $9.25 2

Scorpio Tankers Inc. (STNG)

Target: $15.00

STNG is the BETA play for the product tanker trade with a lot of optionality (dividends, buybacks, yield spinoff). The company should benefit from a pickup in product tanker dayrates as US exports ramp.

Mkt Cap: $1.7B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

26

Energy & Utilities SMID Cap Oil & Gas Exploration & Production Rank

Company

Pricing

Price: $62.48 1

PDC Energy (PDCE)

Target: $74.00 Mkt Cap: $2.5B

Price: $73.41 2

Diamondback Energy, Inc. (FANG)

Target: $85.00 Mkt Cap: $4.9B

Price: $30.33 3

Gulfport Energy (GPOR)

Target: $52.00 Mkt Cap: $3.3B

Mark Lear [email protected] (212) 538-0239

Rationale During the quarter the DCP Lucerne II plant came online, and although neighboring Wattenberg operators indicated a delay in reaching the full 200 MMcfe/d capacity, PDCE's 34 2Q15 extended reach laterals flow to Aka gathering facilities and were not affected. The Lucerne II plant is expected to provide line pressure relief on the company's legacy vertical wells, which is driving expectations for a slightly oilier production mix in the second half of the year. Following 2Q15 earnings where PDCE indicated that it could grow ~35% yr/yr within cash with a four rig Wattenberg program, the company has messaged that if lower oil prices persist, it can hold 2016 production flat yr/yr with as low as $200MM in capex, and can hold production flat through 2017 with ~$300MM per year. PDCE's current production guidance does not account for the uplift in recoveries experienced with plug and perf and biovert completions, but initial results have led the company to weight a higher number of its completions to the modified designs. PDCE drilled 17 wells using biovert in 1H15 and expects to complete 36 additional tests using the diverter in 2H15, and has 55 plug and perf completions scheduled for the year, versus its original plan for 30. PDCE expects to test its first well using the combination of plug and perf and biovert during the fourth quarter. We see FANG as well positioned to weather the weak oil price environment with assets that sit at the very low end of the US cost curve. FANG's balance sheet is among the strongest in our group at 1.1x annualized 4Q15 net debt-to-EBTIDA which has only been enhanced by the cash it received from the recent common stock offering of 2.5MM shares (gross proceeds of ~$176MM), used to pay down its revolver debt. While FANG does not expect to provide much detail on the upcoming call with regards to 2016, we do not see the company ramping rig activity significantly from current levels next year in the current price environment. FANG is currently running four rigs and we expect that with efficiency gains and drilling optimization it could even look to run fewer rigs in 2016. However, assuming four rigs flat, we project that the company can deliver 19% production growth y/yr in 2016 for an estimated capex of $450MM. Operationally, FANG expects to discuss results rom its stacked lateral test of the Wolfcamp A, B and Lower Spraberry in the core Spanish Trail, as well as the performance of its 500 ft spaced Wolfcamp B wells. The company is also encouraged by recent industry well results from the Middle Spraberry and Wolfcamp A, and we would expect additional commentary on that front. In addition, it just completed drilling a three-well pad in Glasscock County and is currently drilling another two-well pad in Glasscock County. In terms of the acreage it acquired in Howard county earlier this year, FANG currently expects that it will initiate drilling activity there by the end of 2015 or early 2016. After an active summer with two sizeable acreage transactions as well as a midstream joint venture agreement under its belt, GPOR anticipates a relatively quiet 3Q15 earnings release. For the quarter, it expects production to be within the previously disclosed guidance range of 590 – 610 MMcfe/d which represents 27% growth qtr/qtr. The company just recently announced that it had entered into a midstream JV with RICE in the dry gas Utica, specifically in Belmont and Monroe counties. The assets under the JV will include a dry gas gathering system and a freshwater distribution system, and GPOR will dedicate 77k net acres from its recent acquisitions to the JV. While RICE will remain the primary operator GPOR expects to have a 25% ownership and will proportionately contribute to the estimated gross capex spend of $640MM over the next six years. Construction is expected to begin immediately, but GPOR does not anticipate any near term capital obligations until 2016.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

27

Dan Eggers

Energy & Utilities Utilities Rank

Company

[email protected] (212) 538-8430 Pricing

Price: $28.37 1

Exelon Corporation (EXC)

Target: $38.00 Mkt Cap: $26.1B

Price: $64.17 2

Pinnacle West Capital Corp. (PNW)

Target: $71.00 Mkt Cap: $7.1B

Price: $102.23 3

NextEra Energy Inc. (NEE)

Target: $124.00 Mkt Cap: $47.1B

Rationale We continue to see further improvement in the power markets through a rebalancing of the supply-demand dynamic as MATS related coal plant retirements are fully realized in the dispatch curve providing support for energy prices. On capacity, EXC is also well positioned to take advantage of the structural improvements from the RPM auctions with Capacity Performance products, and Order 745 (demand response) appeal before the Supreme Court. For EXC we see a number of unique earnings drivers that should play out over the coming year including 1) improvement in retail margins, and 2) legislation on a clean energy standard either in Illinois and on a national basis (which feels a bit more speculative at this point). We like PNW because (1) Solid growth outlook with modeled EPS growth over 5% to 2018 based on current capex plans and continued O&M cost management. We could see upside if the economy starts to get better with tighter housing potentially creating an opportunity for more growth. (2) A single-state utility leaves M&A opportunity. We have no special insight into PNW's strategic plans but we would be foolish not to at least recognize that the market interest in single-state utilities has been good and PNW is one of the few that still fits that bill. Past deals have cleared at ~25% premiums leaving a nice layer of optionality at least. (3) Solar doomsday fears are easing. Rooftop solar additions are still coming into Phoenix but the policy trends toward more fixed charges on customer bills (where the munis have been most visible) and efforts by PNW for utility owned residential solar are helping to temper this risk. A decision to increase PNW's fixed charge this summer would be nice but not imperative to the story in our minds. Management continues to deliver on the plan that they laid out during the analyst day, while actively exploring opportunities to drive incremental growth that should put them at the upper end of the 5-7% growth rate. We continue to like the NEE story and like that management is both focused on both the near term operational performance and the longer-term strategic direction of the company. Some of the incremental catalysts include 1) continued growth of the renewables backlog, 2) potential acceleration in housing/power demand in South Florida at the FP&L utility, 3) continued evaluation of strategies to optimize the value of contracted generation assets (the YieldCo conversation), 4) a possibility of another regulated utility acquisition (in addition to Hawaii), and 5) ‘helping’ the market find a way to better reflect the value of its NEP GP ownership in the stock.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

28

Craig Siegenthaler

Financials Asset Managers Rank

Company

[email protected] (212) 325-3104 Pricing

Price: $185.06 1

Affiliated Managers Group (AMG)

Target: $236.00 Mkt Cap: $10.0B

Rationale (1) Capital Deployment via Deals and Buybacks: We continue to look for 3-5 deals over the next 12 months. AMG announced a new Wealth affiliate in 2Q (bringing Wealth AuM to ~35B), and it’s deal pipeline remains robust, skewed towards Alt Managers (currently ~35% of earnings). Additionally, we expect buybacks to provide support in the event of slower deal execution. Sellside estimates currently embed zero deals, limited buybacks. (2) Diverse Manager Base coupled with resilient institutional flows have offset weakness in the retail channel (US driven). We anticipate 45% OG for AMG compared to 0-2% for peers.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

29

Susan Katzke

Financials Banks – Large Cap Rank

Company

Pricing

Price: $65.54 1

JPMorgan Chase & Co. (JPM)

Target: $75.00 Mkt Cap: $243.4B

[email protected] (212) 325-1237 Rationale

Catalysts: (1) continued fundamental outperformance and (2) clarification of /proven manageability /possible reduction in mandated domestic GSIB capital surcharges. JPM has shown both ability and willingness to optimize its balance sheet and capital deployment. It's also proven the value of a scaled, integrated financial services entity. Expect continued fundamental outperformance to drive the shares.

Simpler and Stronger. Target price $20. Achievement of that target price relies heavily on the long-anticipated realization of the earning power inherent in the Bank of America franchise. We believe this franchise can 1) grow revenues, 2) become materially more efficient, and 3) return more to shareholders, increasing both ROTE and capital Target: $20.00 payouts, over time. Moving along this path, we forecast earnings of $1.45 per share for 2015, $1.60 per share for 2016, and $1.75 per share for 2017. Bank of America is our value idea, forecast 10% tangible book value growth Mkt Cap: $177.6B should support upside; more substantial outperformance relies on more visible earnings and return momentum. Price: $17.06

2

Bank of America Corp. (BAC)

3

Wells Fargo & Company (WFC)

Price: $54.85 Target: $65.00 Mkt Cap: $281.6B

You Get What You Pay For. In our view, the premium on WFC shares is warranted by virtue of the consistency and quality of Wells Fargo's earnings growth and returns. Such consistency reflects the benefit of diversification (by business and by geography) married with a strong sales culture, risk management and reinvestment discipline. Together, these factors drive sustained growth, above average ROEs and lower revenue and earnings volatility.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

30

Jill Shea

Financials Banks – Mid Cap Rank

Company

Pricing Price: $12.78

1

KeyCorp (KEY)

Target: $15.50 Mkt Cap: $10.7B Price: $37.80

2

BB&T Corp. (BBT)

Target: $46.00 Mkt Cap: $29.5B Price: $29.20

3

Zions Bancorporation (ZION)

Target: $34.00 Mkt Cap: $6.0B

[email protected] (212) 325-5801 Rationale The story for 2015 will center on the company's ability to generate positive operating leverage with further efficiencies. Without heroic forecasts for the near term outlook including a combination of 4% revenue growth, 3% expenses growth, and a 4% decline in the average share count, we forecast 3% growth in operating EPS with confidence in the achievability of the forecast. The capital return story remains strong, and we forecast a return of 92% of capital to shareholders in the form of dividends and buybacks for full-year 2015. We continue to expect BB&T and its diversified business model to generate above-average returns. We forecast a 2015 ROTE of 13%, well above the mid cap peer median. An improving efficiency ratio, above average loan growth, fee income growth, and solid capital levels provide additional earnings levers. In terms of a near-term catalyst, we see a solid level of capital return to shareholders. While BB&T is less asset sensitive than the average peer bank, we believe that the company still stands to benefit modestly from a rising interest rate environment. Among the asset sensitive names, we favor ZION as the most flexible with its smaller securities portfolio, outsized cash position and variable rate loan book. We believe this flexibility will help ZION realize a sustained earnings benefit in a higher rate environment. We have embedded a 75% interest bearing deposit beta into our NIM and EPS estimates which we think will prove conservative, particularly in the early part of the Fed tightening cycle, which would lead to upside to our earnings estimates if deposit pricing lags.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

31

Financials Brokers, Exchanges & Alternative Asset Managers Rank

Company

Pricing Price: $31.37

1

The Charles Schwab Corp (SCHW)

Target: $32.00 Mkt Cap: $41.3B Price: $189.68

2

Goldman Sachs Group, Inc. (GS)

Target: $215.00 Mkt Cap: $82.1B Price: $56.26

3

Raymond James Financial, Inc. (RJF)

Target: $58.00 Mkt Cap: $8.1B

Christian Bolu [email protected] (212) 538-9805

Rationale Charles Schwab is a leading provider of advice-driven and self-directed financial services to the individual investor and independent investment advisors. We like the Schwab asset gathering story and see the shares as one of the better places to invest given significant macro & company specific catalyst. Macro catalyst: We expect earnings power to more than double form current levels as short term rates rise. Company specific catalyst: Schwab can more optimally monetize ~$75 Billion of client cash balances by growing its affiliated bank, this should drive ~20-30% earnings accretion over the next 2-3 years even if interest rates remain at current levels. We view GS as a best-in-class brokerage franchise with solid market positioning across myriad of client businesses and a strong balance sheet. With a proven ability to gain and sustain market share across the franchise and a long track record of performance and achieving premier returns, we expect GS will continue to deliver fundamental results that are at the high end of the peer group.

RJF enjoys an industry-leading position as a top three independent retail brokerage house with a L/T track record of 10%-plus organic client asset growth. As with retail broker peers, earnings remain depressed in the current interest rate environment; we expect 15-25% boost to the bottom line as rates ultimately normalize. All in all, we view RJF as a value play on growth in retail wealth, advisors turning independent and rising interest rates.

Note: **Goldman Sachs (GS) is co-covered by Susan Katzke. RJF is new #3 Top Pick. Removed ICE (Stock is Restricted).

Source: Credit Suisse; Data as of 2-Nov-15

32

Tom Gallagher

Financials Insurance – FG & Life Rank

Company

Pricing

Price: $51.07 1

MetLife, Inc. (MET)

Target: $60.00 Mkt Cap: $57.0B

[email protected] (212) 538-2010 Rationale Our target price of $60, implies that MET trade at 9.5x of 2016 operating earnings. We think current price of $56 undervalues the stock at less than 9x our 2016 estimate, given improved visibility on capital returns and continuation of organic growth in international markets. Recently, MET challenged FSOC’s Non-Bank SIFI designation in a court action. While initial reaction on shares has been negative, we see the optionality for shareholders as neutral to positive because 1) Given MET’s current level of capital returns, adverse consequence of a stress test is not very high, 2) While it is not easy for MET to win, the positive impact from a favorable ruling on MET and on the capital framework would be substantial, and 3) The bold move from MET could imply further significant action from management that would be positive for shareholders. In addition, given MET's focus on free cash flow going forward and the goal to reach 45-55% FCF by 2018, we see the potential for further upside to the stock.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

33

Ryan Tunis

Financials Insurance – P&C Rank

Company

Pricing

Price: $61.80

1

Allstate Corporation (ALL)

Target: $74.00 Mkt Cap: $23.9B

Price: $114.07 2

ACE Limited (ACE)

Target: $123.00 Mkt Cap: $37.0B

[email protected] (212) 325-6306 Rationale

Though auto collision frequency have weighed on margins, ALL is taking action by increasing prices across its book and cutting expenses. We believe auto margin improvement should start to appear in 4Q. Release of capital supporting the home business from cheaper reinsurance ($1-2b). Potential sale of runoff life business (could fund $1.5b of share buyback). Appreciation for positive value of Esurance, both as long term business and as runoff. We view the ACE CB deal as an aggressive, strategically sound and consistent move by ACE, as the company rounds out its footprint in a number of key US markets (High net worth personal lines, professional lines, surety, middle market commercial) made possible by the high level of balance sheet flexibility shared by both companies (we think over $7b of excess deployable capital was sitting on both balance sheets). Several areas not explicitly mentioned or guided to by the company that we think are important to consider and positive for forward numbers include: 1) likelihood of a lower run-rate tax rate for CB earnings following tax planning strategies, 2) limited partnership income that will be included in ACE's operating earnings but were omitted from CB, 3) revenue synergies given the limited overlap of the two companies, 4) resumption of capital management which we think will happen in 2017 and is supported by meaningful free cash flow between the two companies and still manageable debt levels 5) reinsurance cost saves as the scale of the combined entity gives ace even more buying power.

Price: $38.21 3

XL Group plc (XL)

Target: $43.00

We expect >$350mm of cost saves from Catlin deal vs. management guided $250mm. Cost saves from reinsurance spend not contemplated in management targets, we think could exceed $100mm. Share repurchases also resumed sooner than expected.

Mkt Cap: $11.4B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

34

Doug Harter

Financials Mortgage REITs Rank

1

Company

Nationstar Mortgage Holdings Inc. (NSM)

[email protected] (212) 538-5983 Pricing

Price: $13.81 Target: $25.00 Mkt Cap: $1.3B

Price: $12.41 2

New Residential (NRZ)

Target: $18.00 Mkt Cap: $2.9B

3

PennyMac Mortgage Investment Trust (PMT)

Price: $14.90 Target: $19.00 Mkt Cap: $1.1B

Rationale

We see NSM offering an attractive valuation with a potential sale of a minority stake in Xome (formerly Solutionstar) acting as a catalyst to highlight this value. With Xome's valuation crystalized, this should highlight the substantial discount to book value the mortgage bank currently trades at this point in time. With $8-12/share in value for Xome, this leaves about $3-7/share in value for the mortgage banking (servicing and origination) business at today's stock price. This represents 16-43% of current book value. Improving servicing profitability in the back half of the year will set the backdrop for the improved mortgage banking valuation.

NRZ offers an attractive total return potential considering its increased third quarter dividend ($0.46/share) as well as longer term upside as the value of the call rights are recognized. The pace of MSR transfers has accelerated throughout 2015, which NSM has been a key beneficiary having acquired $68 billion of UPB thus far. NRZ stands to benefit as the company will likely purchase a third of the excess MSRs in partnership with NSM and Fortress funds. The simplification of the investment portfolio also enhances the stability of earnings, further adding to the upside.

PMT remains one of our top picks following the recent weakness in the stock. While GAAP EPS are volatile around investment gains, the underlying cash flows from the distressed real estate portfolio remain stable and (excluding loan sales) remain near record levels. Given the embedded value in the portfolio coupled with the new investments, we expect cash flow levels to increase in the coming quarters. Trading at 28% discount to current book value coupled with a 12.8% dividend yield provides for an attractive risk reward opportunity.

Note: NSM is new #1 Top Pick. PMT moved to #3 (from #1). Removed TWO (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

35

Ian Weissman / George Auerbach

Financials REITs Rank

Company

[email protected] / [email protected] (212) 538-6889 / (212) 538-8082 Pricing Price: $29.55

1

General Growth Properties (GGP)

Target: $33.00 Mkt Cap: $25.4B Price: $29.62

2

Hudson Pacific Properties (HPP)

Target: $36.00 Mkt Cap: $2.6B

Price: $129.77 3

Boston Properties, Inc. (BXP)

Target: $150.00 Mkt Cap: $19.8B

Rationale General Growth Properties (GGP) is our top pick across the REIT space (Outperform, $33 TP). The valuation is compelling with the company trading at a 10% discount to NAV (compared with a 1% discount for SPG, its closest peer). Moreover, its large development/redevelopment pipeline will drive significant FFO growth in the coming years. As of 2Q15, GGP had a $1.0B capital budget for its development pipeline. The projects are expected to deliver a ~9% blended return, stabilize at a 5.0% cap rate, and generate $700M in development accretion.

We are adding Hudson Pacific Properties (HPP) to our top-pick list (Outperform, $36 TP). The stock trades at a 14% discount to NAV (in-line with peers) despite its west coast footprint that has enabled it to generate 1H15 SSNOI growth of 11.3% and leasing spreads north of 35%. The Redwood EOP portfolio is expected to be a particularly strong growth driver as we expect HPP to mark-up base rents 30% while continuing to drive occupancy.

We are retaining Boston Properties (BXP) on our top-pick list. BXP trades at a 17% discount to NAV compared with a 15% discount for peers. Management is taking the appropriate steps to correct the mispricing by selling assets ($750m in 2015), refinancing debt maturities, and continuing to execute on its fully-funded development pipeline. We believe the discount is unwarranted as the company's portfolio quality is unrivaled, its management team has consistently proven its ability to successfully allocate capital, and the company's $2 billion development pipeline is undervalued.

Note: GGP is new #1 Top Pick. HPP is new #2 Top Pick. BXP moved to #3 (from #2). Removed SPG (We see better opportunities elsewhere) and LHO (Downgraded to Neutral).

Source: Credit Suisse; Data as of 2-Nov-15

36

Moshe Orenbuch

Financials Specialty Finance Rank

Company

Pricing

[email protected] (212) 538-6795 Rationale

Price: $56.28

1

Discover Financial Services (DFS)

Target: $68.00

We believe that Discover represents the best combination of strong operating fundamentals and valuation among the large card issuers. The company is returning the vast majority of earnings, and appears to be positioning the network to be a source of value to shareholders.

Mkt Cap: $24.1B Price: $75.22

2

Visa Inc. (V)

Target: $85.00

Continues to navigate post-Durbin environment well. Expected to recapture most of its debit market share through new pricing and keep rapidly expanding international business. Demonstrated ability to enhance margins if weaker economic actively leads to slower revenue growth.

Mkt Cap: $183.0B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

37

Financials Trust Banks, M&A Advisors & Market Technology Rank

1

Company

Investment Technology Group Inc. (ITG)

Pricing

Price: $17.00 Target: $19.00 Mkt Cap: $0.6B

Price: $49.40 2

Lazard Ltd. (LAZ)

Target: $58.00 Mkt Cap: $6.3B

Ashley Serrao [email protected] (212) 538-8424

Rationale

The recent management update about client town halls affirms and recent appointment of the new CEO Frank Troise reaffirms our belief that the impact of the SEC settlement will be temporary, the position of the franchise as a key provider of dark liquidity remains intact and the lost share and capture rate will recover as clients gradually reinstate ITG as a routing venue—mgmt notes that conversations here have been constructive. All in, we continue to believe the firm is cyclically well-positioned to succeed in Europe and still has the free options we noted in our initiation report: 1) M&A 2) outsourcing of clearing and 3) success of POSIT FX remain intact.

We view Lazard as a long-term market share gainer across both its asset management and financial advisory franchises. In the near-term we believe the franchise continues to fire on all cylinders–advisory backlogs continue to remain strong and asset management continues to grow from strength aided by net inflows despite EM markets volatility. Longer-term, while there will be choppiness around emerging markets, institutional investors remain underallocated and we believe the secular story is intact. In addition, in light of our view calling for a flatter and longer M&A cycle we believe the firm is well-positioned to thrive given its exposure to Europe and the US, as well as the revenue diversity and stability provided by the asset management business. All in, we see no reason why Lazard can't continue to drive margins higher toward 30% given the positive implications for compensation from the ongoing revenue mix shift towards asset management.

Note: Removed NDAQ (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

38

Health Care Health Care Distribution & IT Rank

Company

Pricing

Glen Santangelo [email protected] (212) 538-5678

Rationale

Price: $180.64

1

McKesson Corporation (MCK)

Target: $220.00

We believe a positive fundamental backdrop as well as upside to Celesio accretion should support further outperformance.

Mkt Cap: $41.6B Price: $124.46 2

Lab Corporation of America (LH)

Target: $145.00 Mkt Cap: $12.6B

3

PAREXEL International Corp. (PRXL)

We believe that the company is well positioned for earnings revision given: 1) the acquisition of Covance and associated cost synergy opportunities; 2) conservative base assumptions embedded in guidance for legacy Covance & LabCorp; and 3) potential for incremental capital deployment/faster debt paydown. With a slightly better backdrop for the base lab business and favorable CRO trends, we see an attractive risk/reward for the shares.

Price: $65.85 Target: $75.00

We like PRXL as the company has plenty of runway for potential margin expansion to reach the levels of industry peers and capital deployment opportunities that may be underappreciated.

Mkt Cap: $3.5B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

39

Health Care Medical Supplies & Devices Rank

Company

Pricing

Price: $18.86 1

Boston Scientific Corp (BSX)

Target: $19.00 Mkt Cap: $25.3B

Matt Keeler [email protected] (212) 325-9008

Rationale

We believe BSX is well positioned to deliver 4%+ organic top-line growth through the next-gen S-ICD, US quadripolar ICD, US Synergy, US Watchman & European Lotus launches. Given the potential for above-peer margin leverage driving 10%+ EPS growth (also above med-tech peers) we expect BSX’s current valuation to expand from in line with peers currently which drives our favorable view on the stock.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 30-June-15

40

Vamil Divan

Health Care Pharmaceuticals Rank

Company

Pricing

[email protected] (212) 538-5394 Rationale

Price: $35.06

1

Pfizer (PFE)

Target: $41.00

We remain focused on the optionality PFE can provide in terms of business development and its mid-late stage clinical pipeline. These two factors, along with PFE’s current valuation and the company’s group-high dividend yield drive our Outperform rating.

Mkt Cap: $216.2B We rank BMY it as one of our most compelling names in our Pharmaceuticals coverage universe given it appears best positioned to benefit from a multi-year immuno-oncology (I-O) story that is still in the very early innings. Investment positives: (1) Bristol's attractive pipeline, which is supported by its leading position in I-O and spearheaded Target: $76.00 by the Opdivo/Yervoy combination; (2) reasons to maintain optimism on key marketed products such as Eliquis that has best-in-class data but have not performed up to expectations thus far; and (3) potential for significant operating Mkt Cap: $109.7B leverage as key franchises mature. Price: $65.75

2

Bristol Myers Squibb Co. (BMY)

Price: $82.04 3

Eli Lilly & Co. (LLY)

Target: $99.00 Mkt Cap: $90.9B

We rank LLY as third most valued stock in our coverage. This is based on LLY’s strong return to growth story with maturation of its mid-late stage clinical pipeline. Investment positives: (1) LLY's attractive pipeline in autoimmune and diabetes space; (2) management commitment to long-term expense targets and dividend growth; and (3) underappreciated Phase 3 pipeline outside of higher risk assets modestly reflected in the stock.

Note: LLY is new #3 Top Pick. PFE moved to #1 (from #2). BMY moved to #2 (from #1). Removed ABBV (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

41

Rob Spingarn

Industrials Aerospace & Defense Rank

Company

Pricing

Price: $48.26 1

BE Aerospace Inc. (BEAV)

Target: $59.00 Mkt Cap: $5.0B

[email protected] (212) 538-1895 Rationale This business is a strong proxy vehicle for long-term air travel growth (which we see as one of the most attractive end-markets in Industrials; and BEAV is profitably leveraged to both the OE and aftermarket cycles. Increased content on new aircraft is on the way. While growth in 2016 will be low single digit (mix & timing), it will pick up again in 2017 given higher volumes (Boeing and Airbus deliveries rising) and content expansion on new aircraft (737 lavatories, A350 galleys, oxygen tanks on several platforms, strong seating business). Also, primary competitor to BEAV in seating market has been having execution and quality issues which could present market share opportunities for BEAV. Stock is cheap after the pullback. While the company had previously favored debt pay-down over share repurchases in the near-term, it recently started executing on its share buyback program. Lastly, we continue to believe BEAV is a potential takeout candidate, and see a takeout as another potential exit opportunity for investors.

Price: $124.23 2

L-3 Communications (LLL)

Target: $145.00

LLL is the cheapest stock among the Defense primes on a FCF yield basis. We believe that (1) divesting some of the lagging service-driven businesses, and (2) margin upside from integration of legacy acquisitions should drive a catchup trade to peers.

Mkt Cap: $9.7B

Price: $87.48 3

Orbital ATK Inc. (OA)

Target: $99.00 Mkt Cap: $5.2B

Compelling margin expansion, cash flow & capital deployment story: OA is well positioned in a bottoming defense market and a growing commercial space market, and we view this as an exciting margin & cash flow story which will support a favorable (and balanced) capital allocation strategy. The merger with ATK presents key strategic & financial synergy opportunities that are expected to be fully integrated by 2016 YE and should drive margin expansion (200300bps over 3 years).

Credit Suisse has decided not to enter into business relationships with companies that Credit Suisse has determined to be involved in the development, manufacture or acquisition of anti-personnel mines and cluster munitions. For Credit Suisse's position on the issue, please see https://www.creditsuisse.com/media/cc/docs/responsibility/policy-summaries-en.pdf Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

42

Industrials Airfreight & Ground Transport Rank

Company

Pricing

Price: $140.06 1

Canadian Pacific Railways (CP)

Target: $178.00 Mkt Cap: $28.2B

Price: $89.10 2

Union Pacific (UNP)

Target: $108.00 Mkt Cap: $76.1B

Price: $76.60 3

JB Hunt Transport Services (JBHT)

Target: $91.00 Mkt Cap: $8.8B

Allison Landry [email protected] (212) 325-3716

Rationale On a path to $10 billion of revenue and an O.R. of 58%-63% in 2018. The key driver of growth is improving network velocity to turn assets faster, provide better service, increase network capacity, and take both price and market share in the process. We saw evidence of this during 1H and this has persisted into Q3 with service levels having returned to prior peak levels. § If CP is able to improve network speed, pay employees above industry standards (while still reducing labor costs), attain high quality revenue with industry leading margins, the story is far from over. § When factoring the targeted $6 billion of FCF and the possibility of recalibrating the leverage profile to the tune of $3-$6 billion of debt, CP potentially has between $6 billion to $12 billion of cash that it can return to shareholders through 2018. UNP is a high-quality company with pricing power that we see returning to solid double-digit earnings growth in 2016. § The company has historically not needed a lot of volume to drive earnings growth, although 2015 will continue to remain challenged on this front given the weak commodities environment, difficult comparisons, and the substantial decline in coal carloads YTD. § However, UP still stands to benefit from pricing acceleration ahead of its peers (even in spite of what could manifest as a weaker than anticipated benefit from legacy pricing) and productivity gains (in 2H) as the network continues to recover. We also think there is scope for the company to increase its share buyback activity. We believe there is scope for upside to Hunt’s lowered intermodal volume outlook for ‘15 should a pickup in consumer goods demand unfold. Additionally, continued rail service improvement and recent signs of a shift back to the West Coast ports by shippers could be additive to volumes in 2H - and undoubtedly in 2016. § JBHT should start to accrue the benefits from the efficiency/technology investments made in Q2 during the fourth quarter – which are expected to ramp over time.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

43

Julie Yates

Industrials Airlines Rank

Company

[email protected] (212) 325-3706 Pricing Price: $46.74

1

Southwest Airlines Co. (LUV)

Target: $56.00 Mkt Cap: $30.4B

Price: $50.70 2

Delta Air Lines, Inc. (DAL)

Target: $65.00 Mkt Cap: $40.2B

Rationale LUV's de-rating has been the sharpest among peers, which seems unwarranted given that unit revenues are still outperforming the industry combined with the quality of the balance sheet, insulation from currency headwinds, and rising shareholder returns. Unit revenue performance is still solid versus domestic peers (only trailing JBLU), especially excluding stage and gauge headwinds and considering how much of the network is under development. We see significant opportunity from numerous revenue levers and believe consensus is too bearish on ex fuel unit cost growth in 2015. LUV’s consensus 2016 multiple of 10x is nearly 8 turns below the 17.6x average in 2014 and is well below record low levels seen in mid-2012. Best-in-class. A key holding for airline investors given lower debt levels, a fully integrated merger, an established and generous shareholder return program, the best FCF generation in the group, and a leading position in the corporate market share that yields a domestic unit revenue premium to the industry. DAL has exhibited strong capacity discipline in a soft yield environment and reallocated capacity in a way that should lead to continued unit revenue outperformance.

Note: Removed JBLU (Downgraded to Neutral).

Source: Credit Suisse; Data as of 2-Nov-15

44

Industrials Electrical Equipment & Multi-Industry Rank

Company

Pricing

Julian Mitchell [email protected] (212) 325-6668

Rationale

We see a number of company-specific catalysts to drive GE price performance in 2016. 1.) Divestments of GECC assets should speed up by year end. The sooner GE can be de-designated as a SIFI, the sooner large share buybacks can start (likely 2H16). 2.) The approval of the Alstom acquisition should allow GE to pursue other Industrial Target: $31.00 acquisitions, which have effectively been on-hold since April 2014. This should help push up the overall GE valuation multiple. 3.) GE still has momentum behind its GM expansion effort, where most other industrials are likely at peak Mkt Cap: $296.8B margins. In addition, GE's 4% dividend yield should provide support to the stock price. Price: $29.40

1

General Electric (GE)

Price: $159.92 2

3M (MMM)

Target: $167.00 Mkt Cap: $98.5B

Price: $60.21

3

Ingersoll-Rand Plc (IR)

Target: $66.00 Mkt Cap: $15.7B

We think the risk / reward is attractive after the stock's 2H15 pull-back, particularly when considered against other 'defensive' EE/MI peers. MMM is one of the few stocks in our group that has a chance of growing EPS at a doubledigit pace next year, without our having to believe in a sharp macro improvement. MMM's balance sheet can be put to work to shore up organic growth through buybacks (spend target is $4-5bn for 2015, up from $3-5bn) or M&A (company has only disbursed around half of the $5-10bn of M&A spend targeted for 2013-2017). MMM now trades at a 0.5X premium to the S&P on 2016 P/E, having typically traded at a 1.5-2X premium. Relative to other defensive EE/MI stocks such as DHR and ROP, it now trades at a 4X P/E discount, which we think is unwarranted. IR is one of the best plays on the recovering U.S. non-residential construction cycle and well placed to take market share in Commercial HVAC. We see strong incremental margins as volumes accelerate based on strong execution with respect to cost-out / simplification efforts over the past several years. With a strong top line, strong incremental margins, and a very friendly capital allocation policy (prefer to return capital to shareholders via buybacks) this is one of our preferred names for 2015.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

45

Industrials Engineering & Construction Rank

Company

Pricing Price: $18.98

1

KBR Inc. (KBR)

Target: $23.00 Mkt Cap: $2.7B

Jamie Cook [email protected] (212) 538-6098

Rationale

Under its new management team, KBR has exited its legacy underperforming businesses and moved towards higher margin, differentiated businesses. KBR's plan to reduce operating expenses by $200M by the end of 2016 appears on track and there are numerous catalysts ahead, including awards such as Magnolia LNG and PNW LNG. Furthermore, KBR's balance sheet is strong with its cash balance about 30% of the market cap.

Note: Removed ACM (We see better opportunities elsewhere) and FLR (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

46

Jamie Cook

Industrials Machinery Rank

Company

[email protected] (212) 538-6098 Pricing

Rationale

Price: $80.19

1

Deere & Co. (DE)

Target: $87.00

Deere is pulling all levers to effectively manage the large ag downturn and set the company up for improved financial performance in 2016. Production more in line with retail demand, help from cost cutting actions, and share repurchase could lead to EPS growth in 2016.

Mkt Cap: $26.3B Price: $29.28 2

Allison Transmission (ALSN)

Target: $33.00

Over 40% of ALSN's sales are levered to later cycle NA straight truck, which is still ~30% below prior peak levels with low to mid-single digit growth prospects.

Mkt Cap: $5.0B Price: $74.34 3

Caterpillar Inc. (CAT)

Target: $78.00 Mkt Cap: $43.3B

CAT is one of the leading equipment manufacturers and is well diversified geographically and by end market. Despite a broader slowdown in global machinery sales driven by deflationary commodity prices, CAT continues to remain the premium brand in the market. An attractive dividend yield and a recently announced restructuring should serve to as strong incentives for shareholders through the downturn.

Note: CAT is new #3 Top Pick. Removed MTW (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

47

Services Business & Professional Services Rank

Company

Pricing

Price: $90.13 1

Gartner Inc (IT)

Target: $98.00

Mkt Cap: $7.5B

Price: $47.72 2

Nielsen Holdings (NLSN)

Target: $53.00

Mkt Cap: $17.4B

Price: $52.30 3

Avis Budget Group, Inc. (CAR)

Target: $55.00 Mkt Cap: $5.4B

Anjaneya Singh [email protected] (212) 325-7306

Rationale

Salesforce productivity has had a high correlation with Gartner's stock and contract value. Gartner's salesforce growth is in early innings, which should result in higher existing wallet share and new prospect conversion over time. We estimate that this could be an incremental ~$3.4B opportunity (~2x the current sales run rate). Furthermore, we believe that the research business is likely to grow much faster than other segments in the longer term. We show that for every 50 basis points of mix change toward research, Gartner's margins are likely to expand by ~10 bps, all else equal. We note that Gartner operates in a $58B market and has significant room to grow market share (currently ~3%).

A key trend of which Nielsen will likely be a big beneficiary: creating measurement tools around online and mobile by using its competitive advantage in TV ratings and its Buy segment footprint. A conservative ~3% penetration into the ~$60B online market over the next 5 years could add over $6/share of value to the stock. Our sense is post a delevering to a multiple of slightly below 3x, NLSN will be in a position to be a large dividend payer based on its recurring revenue base (90%+ retention rates), asset-light model and limited cyclicality (core TV segment grows 4-5% on average across the cycle). We see the opportunity for a 5% yield in today’s dollars using our FY17 FCF projections .

We think that pricing will begin to pick up in the second half of this year, with an acceleration in 2016, as dynamics in the industry begin to favor pricing, driven by 1) Normalized capacity in the industry, 2) Improvements in yield management systems, and 3) Incentive to offset an expected rise in fleet costs. The recent pullback in the shares and valuation provide significant upside and an attractive risk-reward for believers in the pricing story. The stock is currently trading below 12x 2016E earnings and we think this could expand to above 15x. We expect conviction among investors to improve as the industry demonstrates pricing discipline in the seasonally important summer season.

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

48

Stephen Ju

Technology Internet Rank

Company

[email protected] (212) 325-8662 Pricing

Rationale

We differentiate ourselves on product-by-product deep dive and projections for existing desktop and mobile products and upcoming Instagram, Premium Video and Graph Search. Our analysis leads to the following conclusions (1) FB will be able to drive revenue growth without material lift in ad loads, (2) Street models are too conservative and Target: $115.00 underestimate the long-term monetization, potential of upcoming new products, and (3) Optionality and upward bias to estimates which do not contemplate contribution from multiple other products (like Offers, 3P Mobile Ad Network, Mkt Cap: $291.1B etc.) Price: $103.31

1

Facebook Inc. (FB)

Price: $628.35 2

Amazon com Inc. (AMZN)

Target: $777.00

We expect margins to stabilize driven by gross margin upside from growing mix of 3P, AWS, and digital revenue and fulfillment leverage. This should drive continued growth in 2016.

Mkt Cap: $294.5B Price: $747.74 3

Alphabet (GOOGL)

Target: $850.00

An attractive combination of growth and attractive valuation. We forecast mid-teens revenue growth this year owing to sustained growth in desktop paid search augmented by increasing contribution from mobile and display.

Mkt Cap: $505.0B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

49

John Pitzer

Technology Semiconductors Rank

Company

Pricing

[email protected] (212) 538-4610 Rationale

Price: $60.34

1

Analog Devices Inc. (ADI)

Target: $72.00

Proliferation of force-touch applications across multiple Apple products; Significant exposure to I/A/I and shareholder return target (80% of FCF over the next 5 years)

Mkt Cap: $19.1B Price: $34.11 2

Intel Corp. (INTC)

Target: $40.00

"Last-man-standing" on Moore's Law, DCG structural growth; PC/Tablets stable, free option on mobile. EPS potential of $4.00.

Mkt Cap: $161.7B Price: $17.09 3

Micron Technology Inc. (MU)

Target: $25.00

Industry supply discipline, strong growth for DRAM, particularly from In-Memory and Handsets. Free option on NAND. EPS potential of $5.00.

Mkt Cap: $19.4B

Note: MU is new #3 Top Pick. Removed ON (We see better opportunities elsewhere).

Source: Credit Suisse; Data as of 2-Nov-15

50

Technology Semiconductor Equipment Rank

Company

Pricing

Farhan Ahmad [email protected] (415) 249-7929

Rationale

Price: $76.60 1

Lam Research Corp. (LRCX)

Target: $98.00

Increasing SAM opportunity (3D NAND, multi-patterning in logic and DRAM).

Mkt Cap: $12.1B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

51

Phil Winslow

Technology Software Rank

Company

[email protected] (212) 325-6157 Pricing

Price: $56.89 1

Autodesk Inc. (ADSK)

Target: $80.00 Mkt Cap: $12.9B

Price: $86.19 2

Tableau Software, Inc. (DATA)

Target: $130.00 Mkt Cap: $6.2B

Rationale We believe that several significant drivers to Autodesk's financial performance—including (1) increasing revenue per user due to the forced migration to subscription offerings (2) monetizing new cloud-based add-on services and standalone software, (3) expanding the company's user base via rental license offerings, and (4) eventually raising maintenance pricing to converge with the higher-priced Basic Subscription model—will result in meaningful long-term upside to revenue (at limited incremental cost) versus the market's current expectations as implied by Autodesk's current share price. Although the market for traditional business intelligence solutions reached $16.0 billion in 2014, we believe that the potential for increased adoption of business intelligence solutions in the small- and medium-sized business market, as well as broader end-user penetration within larger organizations, offers a sizeable opportunity to meaningfully increase the market for business intelligence solutions. We have become increasingly positive on Tableau's ability to sustain robust revenue growth, based on (1) our positive opinion of Tableau's long-term corporate strategy and management's ability to execute its vision, (2) the company's unique and evolving technology platform that should position Tableau to expand the market for business intelligence software and continue to gain share, and (3) the revenue opportunities offered by increased international expansion and the introduction of Tableau Online.

Price: $53.24

3

Microsoft Corporation (MSFT)

We believe that Outperform-rated Microsoft can return to double-digit EPS growth by (1) continued rationalization of its cost structure, (2) further divestitures/exits/de-emphasis of non-core businesses, (3) optimization of its capital Target: $60.00 structure, (4) stabilization in Windows pricing, and (5) an accelerating shift to Office 365 (which we believe has reached a key inflection point). Furthermore, we believe that Microsoft Azure will emerge as the clear #2 market share Mkt Cap: $425.3B player in public IaaS and will arise as the leader in public PaaS.

Note: MSFT is new #3 Top Pick. Removed VMW (Stock is Restricted).

Source: Credit Suisse; Data as of 2-Nov-15

52

Michael Nemeroff

Technology SMID Cap Software Rank

Company

Pricing Price: $20.34

1

2U, Inc (TWOU)

Target: $40.00 Mkt Cap: $0.9B Price: $36.03

2

Synchronoss Technologies, Inc. (SNCR)

Target: $60.00 Mkt Cap: $1.6B

3

The Ultimate Software Group, Inc. (ULTI)

Price: $205.09 Target: $215.00 Mkt Cap: $5.9B

[email protected] (212) 325-2052 Rationale

Recent weakness in shares following a short report, which we believe to be inaccurate and misleading, creates a good buying opportunity, in our view. We believe the most important difference between TWOU and for-profit education entities centers around the (1) control of the student admissions process and (2) well documented difference in successful outcomes following the completion of 2U's programs.

We view Synchronoss’ products as increasingly important for wireless carriers to exert leverage against handset OEMs by enabling cross-platform data synchronization among devices that were designed to not interoperate. As more of SNCR's revenue stems from recurring sources (transactional / subscription, up to 77% in 2014 from 70% in 2013), we believe that the multiple of sales that investors will pay for its shares will also increase.

ULTI's shares trade at a premium multiple (7.4x 2016 EV/Sales vs. SaaS peers of 4.1x), which we believe is warranted due to the company's consistent execution and high degree of visibility, which we think investors should covet, particularly in the recent volatile trading environment. We expect ULTI to organically grow core subscription revenue at or above +23% yr/yr over the next several years.

Note: TWOU is new #1 Top Pick. SNCR moved to #2 (from #1). ULTI moved to #3 (from #2).

Source: Credit Suisse; Data as of 2-Nov-15

53

Technology Tech Hardware / Telecom Equipment Rank

Company

Pricing

Kulbinder Garcha [email protected] (212) 325-4795

Rationale

Price: $13.83

1

Hewlett Packard (HPQ)

Target: $19.00

Given stabilizing operations, scope for more predictable cash distribution, conservative guidance and steep undervaluation we see a TP of $45 for HPQ based on our SOTP valuation.

Mkt Cap: $24.9B Price: $121.18 2

Apple Inc (AAPL)

Target: $140.00

Multiple growth drivers including increasing share within compute (iPhone, iPad, Mac) and greater adoption of the iOS ecosystem as well as a commitment to cash distributions. We expect the iPhone business to see continued volume growth in CY15/16 as a result of a prolonged product cycle and a sustainable compute advantage.

Mkt Cap: $675.6B Price: $61.90 3

Arista Networks (ANET)

Target: $90.00

ANET has a unique technological advantage that allows it to differentiate and disrupt within the current oligopolistic networking market, which should drive strong, sustained financial performance over time.

Mkt Cap: $4.2B

Note: No change to Top Picks since last publication.

Source: Credit Suisse; Data as of 2-Nov-15

54

Top Picks in Small Caps PE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Com pany 2U, Inc Arista Netw orks Caesarstone Sdot-Yam Ltd. Euronav NV Frank's International Gulfport Energy Hudson Pacific Properties Investment Technology Group Inc. Jinko Solar KBR Inc. Manchester United Plc Nationstar Mortgage Holdings Inc. New Residential PAREXEL International Corp. PDC Energy PennyMac Mortgage Investment Trust Scorpio Tankers Inc. SolarCity Sportsman's Warehouse Holdings, Inc. Sunrun Synchronoss Technologies, Inc. Tallgrass Energy Partners, L.P. Vail Resorts

TWOU ANET CSTE EURN FI GPOR HPP ITG JKS KBR MANU NSM NRZ PRXL PDCE PMT STNG SCTY SPWH RUN SNCR TEP MTN

Price 20.34 61.90 36.41 15.06 17.22 30.33 29.62 17.00 26.69 18.98 18.06 13.81 12.41 65.85 62.48 14.90 9.25 29.44 10.74 7.36 36.03 44.54 115.30

TP 40 90 62 20 18 52 36 19 45 23 23 25 18 75 74 19 15 90 13 20 60 68 130

% Upside 96.7% 45.4% 70.3% 32.8% 4.5% 71.4% 21.5% 11.8% 68.6% 21.2% 27.4% 81.0% 45.0% 13.9% 18.4% 27.5% 62.2% 205.7% 21.0% 171.7% 66.5% 52.7% 12.7%

2014 NM 40.0x 16.0x NM 16.7x NM NM 12.1x 8.3x NM 67.3x 4.9x 7.9x 30.4x 62.8x 6.1x NM NM 19.3x NM 20.5x 33.5x NM

2015 NM 29.2x 15.3x 6.6x 25.9x NM NM 21.4x 5.8x 12.6x NM 11.4x 6.9x 23.6x 37.1x 10.0x 6.8x NM 21.6x NM 16.8x 21.4x 37.5x

EPS Grow th 2014 2015 33.0% 33.3% 59.9% 36.8% 28.3% 4.5% 75.4% 611.7% -36.5% -35.5% -161.4% -76.9% 156.0% -250.7% 48.5% -43.3% 55.2% 41.5% -184.8% 462.8% 50.3% -124.7% 140.7% -57.2% 55.5% 14.8% 28.4% 28.8% 14.3% 69.4% -14.7% -39.3% 38.2% 2559.0% -111.4% -106.4% -17.7% -10.8% -1665.9% -8.7% 34.6% 22.0% 307.9% 56.5% -25.3% 300.0%

PB 2014 8.8x 7.6x 4.1x 1.2x 3.0x 1.2x 1.9x 1.5x 1.2x 3.0x 3.9x 1.0x 1.1x 6.6x 2.0x 0.7x 1.4x 3.9x -3.7x 2.3x 3.0x 1.3x 5.2x

DY 2014

1.7%

9.3%

16.1%

3.4% 1.1%

Perform ance 1M 3M 12M -36.5% -36.6% 11.8% -1.4% -26.7% -23.8% 5.7% -49.2% -34.2% 1.5% -0.8% 8.3% 6.4% -0.1% -2.3% -7.4% -39.6% 1.6% -3.8% 8.5% 29.1% -16.5% -5.2% 7.6% 11.9% 8.2% 9.1% 8.6% -0.5% 4.0% -2.3% 13.0% 1.5% -25.6% -60.7% -3.1% -20.9% 0.2% 7.4% -4.5% 21.2% 13.6% 33.1% 42.9% -3.0% -16.1% -31.0% -3.9% -13.9% 6.0% -36.5% -49.2% -50.3% -9.9% -8.1% 53.6% -30.0% 10.6% -24.6% -30.3% 3.1% -3.7% 2.1% 10.2% 5.1% 33.5%

Source: Credit Suisse; Data as of 2-Nov-15

55

Valuation Table PE Com pany BASIC MATERIALS Ag Science 1 CF Industries Holding Inc. 2 Monsanto Company 3 Agrium Inc. Chem icals 1 Celanese Corporation 2 Ashland Inc. 3 Sealed Air Corp. CONSUMER Apparel, Footw ear & Softlines 1 Hanesbrands Inc. 2 Phillips-Van Heusen 3 L Brands, Inc. Autos & Auto Parts 1 Magna International 2 Tesla Motors Inc. 3 DELPHI Automotive PLC Gam ing & Lodging 1 Six Flags Entertainment Corp. 2 Marriott International 3 Vail Resorts Hom ebuilding & Building Products 1 Caesarstone Sdot-Yam Ltd. 2 Mohaw k Industries 3 Toll Brothers Media, Cable & Satellite 1 Time Warner Inc. 2 CBS Corporation 3 Manchester United Plc Packaged Food 1 J.M. Smucker Co. 2 Mondelez 3 Pinnacle Foods Inc.

EPS Grow th 2014 2015

PB 2014

DY 2014

1M

-75.8% 7.1% 19.9%

0.6x 6.3x 2.1x

9.5% 1.8% 3.1%

11.1% 7.1% 4.8%

-11.6% -8.6% -7.9%

0.7% -19.0% -3.7%

26.5% -1.7% 33.6%

6.1% 15.6% 25.9%

4.0x 2.4x 8.8x

1.3% 1.2% 1.1%

16.9% 7.3% 3.9%

8.9% -2.9% -6.3%

22.2% 2.7% 37.5%

19.8x 12.7x 28.5x

44.8% 6.3% 4.4%

18.2% 3.8% 14.7%

9.1x 1.7x -79.9x

0.9% 0.2% 1.2%

12.7% -9.1% 3.6%

5.4% -20.6% 19.5%

23.9% -19.4% 36.7%

5.9x NM 16.3x

11.4x NM 16.0x

30.1% -81.9% 15.7%

-48.8% -282.9% 2.0%

1.3x 33.1x 10.1x

2.7%

10.0% -13.6% 8.3%

-1.6% -19.7% 8.1%

8.4% -11.5% 22.4%

13.7% 16.2% 12.7%

67.1x 30.5x NM

33.9x 24.7x 37.5x

-35.1% 26.8% -25.3%

98.1% 23.6% 300.0%

22.0x -10.2x 5.2x

3.7% 0.9% 1.1%

10.5% 8.4% 10.2%

11.2% 6.7% 5.1%

28.7% 2.3% 33.5%

62 230 42

70.3% 16.0% 15.9%

16.0x 24.4x 19.7x

15.3x 19.8x 17.9x

28.3% 18.8% 90.8%

4.5% 23.0% 9.7%

4.1x 3.3x 1.7x

5.7% 4.9% 4.0%

-49.2% -1.6% -6.9%

-34.2% 39.6% 13.5%

76.56 47.87 18.06

100 75 23

30.6% 56.7% 27.4%

18.8x 16.3x 67.3x

16.7x 14.1x NM

18.2% 5.7% 50.3%

12.2% 15.5% -124.7%

2.8x 3.8x 3.9x

1.6% 1.1%

8.5% 18.8% 4.0%

-13.0% -10.5% -2.3%

-3.7% -11.7% 13.0%

117.42 46.44 43.62

133 52 50

13.3% 12.0% 14.6%

20.9x 26.4x 25.0x

21.8x 26.2x 22.9x

4.3% 14.4% 14.6%

-4.5% 0.7% 9.6%

2.4x 2.4x 3.0x

2.0% 1.2% 2.0%

1.5% 6.6% 1.3%

5.1% 2.9% -3.0%

12.9% 31.7% 29.1%

Ticker

Price

TP

% Upside

2014

2015

CF MON AGU

52.35 93.15 94.23

70 109 110

33.7% 17.0% 16.7%

2.6x 18.3x 16.7x

10.9x 17.1x 13.9x

-15.6% 14.9% -21.7%

CE ASH SEE

71.76 110.95 49.84

80 153 63

11.5% 37.9% 26.4%

12.7x 18.2x 25.7x

12.0x 15.7x 20.4x

HBI PVH LB

32.71 92.18 96.45

40 134 94

22.3% 45.4% -2.5%

23.4x 13.2x 32.7x

MGA TSLA DLPH

53.49 213.79 84.42

60 325 92

12.2% 52.0% 9.0%

SIX MAR MTN

51.87 77.46 115.30

59 90 130

CSTE MHK TOL

36.41 198.32 36.25

TWX CBS MANU SJM MDLZ PF

Perform ance 3M 12M

Source: Credit Suisse; Data as of 2-Nov-15

56

Valuation Table PE Com pany Ticker CONSUMER Retail: Broadlines & Departm ent Store 1 Costco Wholesale Corporation COST Retail: Food & Drug 1 Dollar General DG 2 Sysco Corporation SYY 3 CVS Health CVS Retail: Hardlines 1 Home Depot HD 2 Low e's LOW Restaurants 1 McDonald's Corp MCD 2 Panera Bread Company PNRA 3 Darden Restaurants, Inc DRI ENERGY/UTILITIES Alternative Energy 1 SolarCity SCTY 2 Sunrun RUN 3 Jinko Solar JKS Independent Refiners 1 Marathon MPC Integrated Oil & Gas 1 Marathon Oil Corp MRO MLPs 1 Genesis Energy, LP GEL 2 EQT Midstream Partners, LP EQM 3 Spectra Energy Partners, LP SEP 4 Tallgrass Energy Partners, L.P. TEP Oil & Gas E&P 1 Devon Energy Corp DVN Oil Services & Equipm ent 1 Weatherford International, Inc. WFT 2 Frank's International FI Oilfield Services & Marine Transport 1 Euronav NV EURN 2 Scorpio Tankers Inc. STNG

Price

TP

% Upside

2014

2015

EPS Grow th 2014 2015

PB 2014

DY 2014

1M

159.15

165

3.7%

34.1x

29.2x

0.4%

16.7%

5.7x

0.8%

9.1%

9.5%

23.3%

68.74 41.04 100.38

84 45 120

22.2% 9.6% 19.5%

21.4x 3.6x 22.2x

19.5x 22.2x 19.3x

10.0% 531.1% 13.7%

9.2% -83.6% 14.9%

4.1x 4.6x 3.1x

2.8% 1.1%

-3.6% 4.2% 1.4%

-14.5% 13.0% -10.7%

9.7% 6.5% 17.0%

124.41 73.77

135 80

8.5% 8.4%

33.4x 34.2x

26.6x 27.5x

22.3% 22.9%

25.7% 24.3%

14.4x 6.6x

5.6% 5.0%

6.3% 6.4%

27.6% 29.0%

112.11 180.41 62.66

118 215 77

5.3% 19.2% 22.9%

23.2x 27.4x 41.6x

23.0x 29.3x 23.8x

-13.2% -2.2% -51.9%

1.2% -6.3% 74.7%

8.6x 3.4x 3.8x

12.3% -7.4% -8.6%

12.3% -11.6% -15.0%

19.6% 11.6% 21.0%

29.44 7.36 26.69

90 20 45

205.7% 171.7% 68.6%

NM NM 8.3x

NM NM 5.8x

-36.5% -30.0% 7.6%

-49.2%

-50.3%

11.9%

8.2%

52.92

70

32.3%

12.2x

9.1x

30.6%

34.0%

2.9x

1.7%

9.4%

-3.2%

16.4%

19.01

25

31.5%

7.8x

NM

-4.1%

-159.5%

0.5x

4.0%

14.1%

-9.5%

-46.3%

41.09 74.02 42.98 44.54

68 109 61 68

65.5% 47.3% 41.9% 52.7%

36.6x 21.1x 15.4x 33.5x

39.5x 16.5x 14.6x 21.4x

16.2% 56.3% -20.7% 307.9%

-7.3% 27.8% 5.5% 56.5%

3.2x 2.6x 1.1x 1.3x

5.3% 2.8% 5.2% 3.4%

0.6% 7.1% 4.5% 3.1%

-7.4% -6.0% -11.5% -3.7%

-14.4% -16.4% -20.4% 2.1%

43.13

62

43.8%

9.3x

24.7x

-62.4%

0.9x

5.9%

-12.7%

-28.1%

10.69 17.22

13 18

21.6% 4.5%

11.2x 16.7x

NM 25.9x

68.4% -36.5%

-130.6% -35.5%

1.3x 3.0x

18.0% 8.3%

0.1% 6.4%

-34.9% -0.1%

15.06 9.25

20 15

32.8% 62.2%

NM NM

6.6x 6.8x

75.4% 38.2%

611.7% 2559.0%

1.2x 1.4x

1.5% -3.9%

-0.8% -13.9%

6.0%

-111.4% -106.4% -1665.9% -8.7% 55.2% 41.5%

2.9% 3.5%

3.9x 2.3x 1.2x

Perform ance 3M 12M

Source: Credit Suisse; Data as of 2-Nov-15

57

Valuation Table PE Com pany ENERGY/UTILITIES SMID Cap Exploration & Production 1 PDC Energy 2 Diamondback Energy, Inc. 3 Gulfport Energy Utilities 1 Exelon Corporation 2 Pinnacle West Capital Corp. 3 NextEra Energy Inc. FINANCIALS Asset Managers 1 Affiliated Managers Group Banks - Large Cap 1 JPMorgan Chase & Co. 2 Bank of America Corp. 3 Wells Fargo & Company Banks - Mid cap Cap 1 KeyCorp 2 BB&T Corp. 3 Zions Bancorporation Brokers, Exchanges & Trust Banks 1 The Charles Schw ab Corp 2 Goldman Sachs Group, Inc. 3 Raymond James Financial, Inc. Insurance - FG & Life 1 MetLife, Inc. Insuance - P&G 1 Allstate Corporation 2 ACE Limited 3 XL Group plc Mortgage REITs 1 Nationstar Mortgage Holdings Inc. 2 New Residential 3 PennyMac Mortgage Investment Trust

EPS Grow th 2014 2015

PB 2014

Ticker

Price

TP

% Upside

2014

2015

PDCE FANG GPOR

62.48 73.41 30.33

74 85 52

18.4% 15.8% 71.4%

62.8x 33.5x NM

37.1x 55.7x NM

14.3% 91.3% -161.4%

69.4% -39.8% -76.9%

2.0x 2.1x 1.2x

EXC PNW NEE

28.37 64.17 102.23

38 71 124

33.9% 10.6% 21.3%

11.9x 17.8x 19.2x

11.3x 16.8x 18.0x

-2.2%

5.5% 6.3% 6.7%

1.0x 1.6x 2.2x

AMG

185.06

236

27.5%

16.2x

14.9x

11.1%

9.3%

JPM BAC WFC

65.54 17.06 54.85

75 20 65

14.4% 17.2% 18.5%

12.5x 47.2x 13.4x

11.0x 11.9x 13.3x

21.6% -59.3% 5.3%

13.8% 298.2% 1.3%

1.2x 0.8x 1.7x

KEY BBT ZION

12.78 37.80 29.20

16 46 34

21.3% 21.7% 16.4%

11.7x 12.9x 16.5x

11.3x 13.5x 17.7x

2.3% 35.8% -32.6%

3.2% -4.3% -6.8%

SCHW GS RJF

31.37 189.68 56.26

32 215 58

2.0% 13.3% 3.1%

33.0x 11.2x 17.0x

32.1x 12.6x 16.5x

22.7% 10.4% 14.1%

MET

51.07

60

17.5%

9.0x

9.9x

ALL ACE XL

61.80 114.07 38.21

74 123 43

19.7% 7.8% 12.5%

11.7x 11.6x 10.4x

NSM NRZ PMT

13.81 12.41 14.90

25 18 19

81.0% 45.0% 27.5%

4.9x 7.9x 6.1x

DY 2014

1M

Perform ance 3M 12M

13.6% 5.8% -2.3%

33.1% 9.1% -7.4%

42.9% 7.3% -39.6%

-4.9% 0.4% 3.7%

-11.6% 4.0% -2.8%

-22.5% 4.4% 2.0%

8.5%

-11.0%

-7.4%

2.4% 0.7% 2.5%

7.8% 10.9% 7.0%

-4.4% -4.6% -5.2%

8.4% -0.6% 3.3%

1.1x 1.2x 0.9x

2.0% 2.5% 0.6%

-1.5% 5.7% 6.9%

-13.9% -6.1% -6.4%

-3.2% -0.2% 0.8%

2.8% -10.7% 3.5%

3.5x 1.2x 2.0x

0.8% 1.2% 1.1%

13.7% 7.2% 14.2%

-10.1% -7.5% -4.6%

9.4% -0.2% 0.2%

1.9%

-9.0%

0.9x

8.7%

-8.4%

-5.8%

12.8x 11.9x 17.2x

-4.9% 4.8% -3.4%

-8.9% -2.5% -39.8%

4.5% 11.0% 5.3%

-10.4% 4.9% 0.5%

-4.7% 4.4% 12.8%

11.4x 6.9x 10.0x

140.7% 55.5% -14.7%

-57.2% 14.8% -39.3%

1.5% -3.1% -3.0%

-25.6% -20.9% -16.1%

-60.7% 0.2% -31.0%

1.0x 1.1x 0.7x

4.4% 3.6% 2.8%

9.3% 16.1%

Source: Credit Suisse; Data as of 2-Nov-15

58

Valuation Table PE Com pany Ticker Price FINANCIALS REITs 1 General Grow th Properties GGP 29.55 2 Hudson Pacific Properties HPP 29.62 3 Boston Properties, Inc. BXP 129.77 Specialty Finance 1 Discover Financial Services DFS 56.28 2 Visa Inc. V 75.22 Trust Banks, M&A Advisors & Maket Technology 1 Investment Technology Group Inc. ITG 17.00 2 Lazard Ltd. LAZ 49.40 HEALTH CARE Health Care Distribution & IT 1 McKesson Corporation MCK 180.64 2 Lab Corporation of America LH 124.46 3 PAREXEL International Corp. PRXL 65.85 Medical Supplies & Devices 1 Boston Scientific Corp BSX 18.86 Pharm aceuticals 1 Pfizer PFE 35.06 2 Bristol Myers Squibb Co. BMY 65.75 3 Eli Lilly & Co. LLY 82.04 INDUSTRIALS Aerospace & Defense 1 BE Aerospace Inc. BEAV 48.26 2 L-3 Communications LLL 124.23 3 Orbital ATK Inc. OA 87.48 Airfreight & Ground Transport 1 Canadian Pacific Railw ays CP 140.06 2 Union Pacific UNP 89.10 3 JB Hunt Transport Services JBHT 76.60 Airlines 1 Southw est Airlines Co. LUV 46.74 2 Delta Air Lines, Inc. DAL 50.70

EPS Grow th 2014 2015

PB 2014

DY 2014

1M

8.1% -250.7% 23.8%

3.6x 1.9x 3.6x

2.0% 1.7% 5.5%

11.7% 1.6% 8.6%

8.9% -3.8% 5.3%

14.0% 8.5% 5.9%

-0.9% 354.2%

8.5% -70.1%

2.4x 7.7x

1.6% 0.5%

7.9% 6.4%

0.8% -0.2%

-11.8% 24.6%

21.4x 13.4x

48.5% 59.2%

-43.3% 13.6%

1.5x 8.5x

2.4%

29.1% 11.9%

-16.5% -10.8%

-5.2% 2.4%

21.3x 18.2x 30.4x

16.4x 15.8x 23.6x

18.9% -2.2% 28.4%

29.7% 15.6% 28.8%

4.1x 3.8x 6.6x

-3.2% 10.8% 7.4%

-18.1% -2.2% -4.5%

-11.2% 13.9% 21.2%

0.7%

21.9x

20.4x

17.2%

7.4%

3.9x

11.5%

8.8%

42.0%

41 76 99

16.9% 15.6% 20.7%

13.4x 35.6x 29.4x

14.1x 35.4x 23.7x

-34.8% 1.8% -32.9%

-4.4% 0.8% 24.0%

3.1x 7.4x 5.7x

3.0% 2.2% 2.4%

6.0% 5.7% -6.3%

-2.8% 0.2% -2.9%

17.1% 13.0% 23.7%

59 145 99

22.3% 16.7% 13.2%

19.1x 16.4x 15.6x

15.9x 18.0x 17.6x

-32.5% -8.3%

20.8% -8.9% -11.4%

3.1x 0.9x 3.7x

1.9%

10.1% 18.0% 17.7%

-0.9% 7.6% 23.3%

-10.5% 2.3% 60.5%

178 108 91

27.1% 21.2% 18.8%

21.6x 15.4x 24.0x

17.8x 15.7x 20.8x

32.9% 22.0% 10.4%

21.6% -1.7% 15.5%

5.7x 3.8x 7.5x

0.8% 2.0% 1.0%

-6.3% -3.0% 5.5%

-12.9% -8.7% -8.9%

-32.6% -23.5% -4.0%

56 65

19.8% 28.2%

23.2x 15.1x

13.1x 10.9x

79.7% 7.4%

76.8% 38.6%

3.7x 4.7x

0.5% 0.6%

21.8% 13.0%

29.1% 14.3%

35.6% 26.0%

TP

% Upside

2014

2015

33 36 150

11.7% 21.5% 15.6%

21.6x NM 45.1x

20.0x NM 36.4x

13.8% 156.0% -41.7%

68 85

20.8% 13.0%

11.5x 9.1x

10.6x 30.4x

19 58

11.8% 17.4%

12.1x 15.2x

220 145 75

21.8% 16.5% 13.9%

19

Perform ance 3M 12M

Source: Credit Suisse; Data as of 2-Nov-15

59

Valuation Table PE Com pany Ticker Price TP INDUSTRIALS Electrical Equipm ent & Multi-Industry Electrical Equipment & Multi-Industry (3) 1 General Electric GE 29.40 31 2 3M MMM 159.92 167 3 Ingersoll-Rand Plc IR 60.21 66 Engineering & ConstructionEngineering & Construction (1) 1 KBR Inc. KBR 18.98 23 Machinery 1 Deere & Co. DE 80.19 87 2 Allison Transmission ALSN 29.28 33 3 Caterpillar Inc. CAT 74.34 78 SERVICES Business & Professional Services 1 Gartner Inc IT 90.13 98 2 Nielsen Holdings NLSN 47.72 53 3 Avis Budget Group, Inc. CAR 52.30 55 Technology Internet 1 Facebook Inc. FB 103.31 115 2 Amazon com Inc. AMZN 628.35 777 3 Alphabet GOOGL 747.74 850 Sem iconductors 1 Analog Devices Inc. ADI 60.34 72 2 Intel Corp. INTC 34.11 40 3 Micron Technology Inc. MU 17.09 25 Sem iconductor Equipm ent 1 Lam Research Corp. LRCX 76.60 98 Softw are 1 Autodesk Inc. ADSK 56.89 80 2 Tableau Softw are, Inc. DATA 86.19 130 3 Microsoft Corporation MSFT 53.24 60 SMID Cap Softw are 1 2U, Inc TWOU 20.34 40 2 Synchronoss Technologies, Inc. SNCR 36.03 60

EPS Grow th 2014 2015

PB 2014

DY 2014

1M

-20.3% 3.5% 12.0%

2.3x 7.9x 2.7x

3.0% 2.1% 1.7%

15.4% 11.7% 17.2%

12.6% 5.7% -1.9%

13.9% 4.0% -3.8%

-184.8%

462.8%

3.0x

9.1%

8.6%

-0.5%

14.6x 24.5x 16.0x

-5.0% 42.8% 6.9%

-36.9% -5.8% -26.4%

3.2x 3.8x 1.2x

2.7% 1.7% 3.2%

9.0% 9.4% 13.2%

-15.2% 0.3% -5.5%

-6.3% -9.9% -26.7%

40.3x 18.8x 15.7x

37.9x 18.2x 13.9x

13.9% 25.1% 34.7%

6.4% 3.6% 13.4%

50.1x 3.6x 1.0x

1.9%

7.4% 4.3% 14.8%

1.8% -1.5% 20.4%

11.7% 12.3% -6.2%

11.3% 23.7% 13.7%

58.0x NM 29.2x

47.9x NM 26.5x

91.9% -207.0% 16.6%

21.0% 367.1% 10.3%

7.4x 27.1x 4.8x

12.2% 18.0% 13.8%

9.9% 17.2% 13.7%

37.8% 105.7% 31.7%

19.3% 17.3% 46.3%

25.3x 14.8x 5.5x

20.6x 15.4x 6.6x

11.0% 22.6% 2401.2%

23.2% -4.1% -15.8%

4.1x 3.1x 1.9x

8.3% 11.8% 7.4%

3.4% 17.8% -7.7%

21.6% 0.3% -48.4%

27.9%

17.2x

15.0x

98.8%

14.1%

2.6x

16.6%

-0.4%

-1.6%

40.6% 50.8% 12.7%

34.8x NM 20.1x

49.8x NM 20.0x

-13.3% 82.6% 0.9%

-30.2% -22.2% 0.3%

5.8x 8.7x 5.1x

29.3% 2.2% 16.8%

12.5% -17.7% 14.0%

-1.1% 4.4% 13.4%

96.7% 66.5%

NM 20.5x

NM 16.8x

33.0% 34.6%

33.3% 22.0%

8.8x 3.0x

-36.5% 10.6%

-36.6% -24.6%

11.8% -30.3%

% Upside

2014

2015

5.4% 4.4% 9.6%

17.9x 21.3x 18.0x

22.5x 20.5x 16.1x

0.7% 11.5% 24.7%

21.2%

NM

12.6x

8.5% 12.7% 4.9%

9.2x 23.1x 11.8x

8.7% 11.1% 5.2%

2.5%

2.0%

Perform ance 3M 12M

Source: Credit Suisse; Data as of 2-Nov-15

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Valuation Table PE Com pany Ticker Technology Tech Hardw are / Telecom Equipm ent 1 Hew lett Packard HPQ 2 Apple Inc AAPL 3 Arista Netw orks ANET

Price

TP

% Upside

2014

2015

13.83 121.18 61.90

19 140 90

37.4% 15.5% 45.4%

NM 19.9x 40.0x

8.1x 13.4x 29.2x

EPS Grow th 2014 2015

14.1% 59.9%

48.3% 36.8%

PB 2014

6.7x 7.6x

DY 2014

1M

16.8% 9.8% -1.4%

Perform ance 3M 12M

-0.2% -0.1% -26.7%

-15.1% 12.2% -23.8%

Source: Credit Suisse; Data as of 2-Nov-15

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Disclosure Appendix

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Companies Mentioned (Price as of Price as of 2-Nov-15) 2U, Inc (TWOU.OQ, $20.34) Goldman Sachs Group, Inc. (GS.N, $189.68) Raymond James Financial, Inc. (RJF.N, $56.26) 3M (MMM.N, $159.92) Gulfport Energy (GPOR.OQ, $30.33) Scorpio Tankers Inc. (STNG.N, $9.25) ACE Limited (ACE.N, $114.07) Hanesbrands Inc. (HBI.N, $32.71) Sealed Air Corp. (SEE.N, $49.84) Affiliated Managers Group (AMG.N, $185.06) Hewlett Packard (HPQ.N, $13.83) Six Flags Entertainment Corp. (SIX.N, $51.87) Agrium Inc. (AGU.N, $94.23) Home Depot (HD.N, $124.41) SolarCity (SCTY.OQ, $29.44) Allison Transmission (ALSN.N, $29.28) Hudson Pacific Properties (HPP.N, $29.62) Southwest Airlines Co. (LUV.N, $46.74) Allstate Corporation (ALL.N, $61.8) Ingersoll-Rand Plc (IR.N, $60.21) Spectra Energy Partners, LP (SEP.N, $42.98) Alphabet (GOOGL.OQ, $747.74) Intel Corp. (INTC.OQ, $34.11) Sportsman's Warehouse Holdings, Inc. (SPWH.OQ, Amazon com Inc. (AMZN.OQ, $628.35) Investment Technology Group Inc. (ITG.N, $17.0) $10.74) Analog Devices Inc. (ADI.OQ, $60.34) J.M. Smucker Co. (SJM.N, $117.42) Sunrun (RUN.OQ, $7.36) Apple Inc (AAPL.OQ, $121.18) JB Hunt Transport Services (JBHT.OQ, $76.6) Synchronoss Technologies, Inc. (SNCR.OQ, $36.03) Arista Networks (ANET.N, $61.9) JPMorgan Chase & Co. (JPM.N, $65.54) Sysco Corporation (SYY.N, $41.04) Ashland Inc. (ASH.N, $110.95) Jinko Solar (JKS.N, $26.69) Tableau Software, Inc. (DATA.N, $86.19) Autodesk Inc. (ADSK.OQ, $56.89) KBR Inc. (KBR.N, $18.98) Tallgrass Energy Partners, L.P. (TEP.N, $44.54) Avis Budget Group, Inc. (CAR.OQ, $52.3) KeyCorp (KEY.N, $12.78) Tesla Motors Inc. (TSLA.OQ, $213.79) BB&T Corp. (BBT.N, $37.8) L Brands, Inc. (LB.N, $96.45) The Charles Schwab Corp (SCHW.N, $31.37) BE Aerospace Inc. (BEAV.OQ, $48.26) L-3 Communications (LLL.N, $124.23) The Ultimate Software Group, Inc. (ULTI.OQ, $205.09) Bank of America Corp. (BAC.N, $17.06) Lab Corporation of America (LH.N, $124.46) Time Warner Inc. (TWX.N, $76.56) Boston Properties, Inc. (BXP.N, $129.77) Lam Research Corp. (LRCX.OQ, $76.6) Toll Brothers (TOL.N, $36.25) Boston Scientific Corp (BSX.N, $18.86) Lazard Ltd. (LAZ.N, $49.4) Union Pacific (UNP.N, $89.1) Bristol Myers Squibb Co. (BMY.N, $65.75) Lowe's (LOW.N, $73.77) Vail Resorts (MTN.N, $115.3) CBS Corporation (CBS.N, $47.87) Magna International (MGA.N, $53.49) Visa Inc. (V.N, $75.22) CF Industries Holding Inc. (CF.N, $52.35) Manchester United Plc (MANU.N, $18.06) Weatherford International, Inc. (WFT.N, $10.69) CVS Health (CVS.N, $100.38) Marathon (MPC.N, $52.92) Wells Fargo & Company (WFC.N, $54.85) Caesarstone Sdot-Yam Ltd. (CSTE.OQ, $36.41) Marathon Oil Corp (MRO.N, $19.01) XL Group plc (XL.N, $38.21) Canadian Pacific Railways (CP.N, $140.06) Marriott International (MAR.OQ, $77.46) Zions Bancorporation (ZION.OQ, $29.2) Caterpillar Inc. (CAT.N, $74.34) McDonald's Corp (MCD.N, $112.11) Celanese Corporation (CE.N, $71.76) McKesson Corporation (MCK.N, $180.64) Costco Wholesale Corporation (COST.OQ, $159.15) MetLife, Inc. (MET.N, $51.07) DELPHI Automotive PLC (DLPH.N, $84.42) Micron Technology Inc. (MU.OQ, $17.09) Darden Restaurants, Inc (DRI.N, $62.66) Microsoft Corporation (MSFT.OQ, $53.24) Deere & Co. (DE.N, $80.19) Mohawk Industries (MHK.N, $198.32) Delta Air Lines, Inc. (DAL.N, $50.7) Mondelez (MDLZ.OQ, $46.44) Devon Energy Corp (DVN.N, $43.13) Monsanto Company (MON.N, $93.15) Diamondback Energy, Inc. (FANG.OQ, $73.41) Nationstar Mortgage Holdings Inc. (NSM.N, $13.81) Discover Financial Services (DFS.N, $56.28) New Residential (NRZ.N, $12.41) Dollar General (DG.N, $68.74) NextEra Energy Inc. (NEE.N, $102.23) EQT Midstream Partners, LP (EQM.N, $74.02) Nielsen Holdings (NLSN.N, $47.72) Eli Lilly & Co. (LLY.N, $82.04) Orbital ATK Inc. (OA.N, $87.48) Euronav NV (EURN.N, $15.06) PAREXEL International Corp. (PRXL.OQ, $65.85) Exelon Corporation (EXC.N, $28.37) PDC Energy (PDCE.OQ, $62.48) Facebook Inc. (FB.OQ, $103.31) Panera Bread Company (PNRA.OQ, $180.41) Frank's International (FI.N, $17.22) PennyMac Mortgage Investment Trust (PMT.N, $14.9) Gartner Inc (IT.N, $90.13) Pfizer (PFE.N, $35.06) General Electric (GE.N, $29.4) Phillips-Van Heusen (PVH.N, $92.18) General Growth Properties (GGP.N, $29.55) Pinnacle Foods Inc. (PF.N, $43.62) Genesis Energy, LP (GEL.N, $41.09) Pinnacle West Capital Corp. (PNW.N, $64.17)

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Disclosure Appendix Important Global Disclosures The analysts identified in this report each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities As of December 10, 2012 Analysts’ stock rating are defined as follows: Outperform (O) : The stock’s total return is expected to OP the relevant benchmark*over the next 12 months. Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months. Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months. *Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, 12-month rolling yield is incorporated in the absolute total return calculation and a 15% and a 7.5% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively. The 15% and 7.5% thresholds replace the +10-15% and 10-15% levels in the Neutral stock rating definition, respectively. Prior to 10th December 2012, Japanese ratings were based on a stock’s total return relative to the average total return of the relevant country or regional benchmark. Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward. Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation: Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months. Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months. Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months. *An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

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Credit Suisse's distribution of stock ratings (and banking clients) is: Global Ratings Distribution Rating Versus universe (%) Of which banking clients (%) OP/Buy* 59% (34% banking clients) Neutral/Hold* 26% (35% banking clients) Underperform/Sell* 13% (23% banking clients) Restricted 2% *For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors. Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein. Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research and analytics/disclaimer/managing_conflicts_disclaimer.html Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purposes of avoiding any penalties. Please refer to the firm's disclosure website at https://rave.credit-suisse.com/disclosures for the definitions of abbreviations typically used in the target price method and risk sections. See the Companies Mentioned section for full company names The subject company (CVS.N, HBI.N, DE.N, LH.N, WFC.N, MMM.N, ZION.OQ, TWOU.OQ, DVN.N, TOL.N, LAZ.N, EQM.N, PRXL.OQ, SPWH.OQ, SNCR.OQ, DG.N, GGP.N, NRZ.N, BEAV.OQ, NEE.N, NSM.N, ADI.OQ, SEE.N, AAPL.OQ, STNG.N, JKS.N, HPQ.N, PF.N, MON.N, AMG.N, SJM.N, INTC.OQ, GE.N, HD.N, SEP.N, MCK.N, MDLZ.OQ, MU.OQ, PMT.N, GPOR.OQ, FB.OQ, ANET.N, UNP.N, CF.N, GEL.N, PNW.N, KBR.N, FI.N, MAR.OQ, ALSN.N, DLPH.N, SCTY.OQ, AGU.N, MSFT.OQ, ALL.N, DFS.N, KEY.N, FANG.OQ, IT.N, PFE.N, SCHW.N, ADSK.OQ, SYY.N, BAC.N, GS.N, BBT.N, BSX.N, TSLA.OQ, TWX.N, BMY.N, CP.N, LLL.N, CAT.N, DAL.N, LLY.N, EXC.N, RUN.OQ, TEP.N, MGA.N, ACE.N, JPM.N, CBS.N, MCD.N, MET.N) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse. Credit Suisse provided investment banking services to the subject company (DE.N, LH.N, WFC.N, MMM.N, TWOU.OQ, DVN.N, EQM.N, SPWH.OQ, SNCR.OQ, NRZ.N, BEAV.OQ, NEE.N, NSM.N, ADI.OQ, SEE.N, AAPL.OQ, STNG.N, HPQ.N, PF.N, MON.N, INTC.OQ, GE.N, HD.N, MDLZ.OQ, MU.OQ, PMT.N, GPOR.OQ, FB.OQ, ANET.N, UNP.N, GEL.N, ALSN.N, SCTY.OQ, MSFT.OQ, DFS.N, KEY.N, FANG.OQ, PFE.N, SCHW.N, BAC.N, GS.N, TWX.N, BMY.N, CP.N, DAL.N, LLY.N, EXC.N, RUN.OQ, TEP.N, ACE.N, JPM.N, CBS.N, MET.N) within the past 12 months. Credit Suisse provided non-investment banking services to the subject company (WFC.N, ZION.OQ, LAZ.N, BEAV.OQ, INTC.OQ, GE.N, DLPH.N, ALL.N, DFS.N, KEY.N, SCHW.N, BAC.N, GS.N, BBT.N, TWX.N, DAL.N, RUN.OQ, MGA.N, ACE.N, JPM.N, CBS.N) within the past 12 months

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Credit Suisse has managed or co-managed a public offering of securities for the subject company (LH.N, WFC.N, MMM.N, TWOU.OQ, DVN.N, EQM.N, SPWH.OQ, NRZ.N, NEE.N, AAPL.OQ, PF.N, GE.N, HD.N, MDLZ.OQ, MU.OQ, PMT.N, UNP.N, GEL.N, SCTY.OQ, DFS.N, KEY.N, FANG.OQ, SCHW.N, BAC.N, TWX.N, BMY.N, DAL.N, LLY.N, EXC.N, RUN.OQ, TEP.N, ACE.N, JPM.N, CBS.N, MET.N) within the past 12 months. Credit Suisse has received investment banking related compensation from the subject company (DE.N, LH.N, WFC.N, MMM.N, TWOU.OQ, DVN.N, EQM.N, SPWH.OQ, SNCR.OQ, NRZ.N, BEAV.OQ, NEE.N, NSM.N, ADI.OQ, SEE.N, AAPL.OQ, STNG.N, HPQ.N, PF.N, MON.N, INTC.OQ, GE.N, HD.N, MDLZ.OQ, MU.OQ, PMT.N, GPOR.OQ, FB.OQ, ANET.N, UNP.N, GEL.N, ALSN.N, SCTY.OQ, MSFT.OQ, DFS.N, KEY.N, FANG.OQ, PFE.N, SCHW.N, BAC.N, GS.N, TWX.N, BMY.N, CP.N, DAL.N, LLY.N, EXC.N, RUN.OQ, TEP.N, ACE.N, JPM.N, CBS.N, MET.N) within the past 12 months Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (CVS.N, DE.N, PNRA.OQ, LH.N, WFC.N, MMM.N, ZION.OQ, TWOU.OQ, DVN.N, TOL.N, LAZ.N, EQM.N, MTN.N, PRXL.OQ, SPWH.OQ, SNCR.OQ, NRZ.N, BEAV.OQ, NEE.N, NSM.N, ADI.OQ, SEE.N, AAPL.OQ, STNG.N, JKS.N, HPQ.N, PF.N, MON.N, AMG.N, MRO.N, SJM.N, INTC.OQ, GE.N, HD.N, SEP.N, MCK.N, MDLZ.OQ, RJF.N, MU.OQ, PMT.N, GPOR.OQ, FB.OQ, ANET.N, UNP.N, GEL.N, PNW.N, KBR.N, FI.N, DRI.N, COST.OQ, MAR.OQ, ALSN.N, ITG.N, SCTY.OQ, AGU.N, MSFT.OQ, ALL.N, DFS.N, DATA.N, KEY.N, FANG.OQ, LOW.N, HPP.N, IT.N, PFE.N, SCHW.N, ADSK.OQ, SYY.N, V.N, BAC.N, GS.N, BBT.N, BSX.N, TSLA.OQ, TWX.N, BMY.N, CP.N, AMZN.OQ, LLL.N, CAT.N, DAL.N, LUV.N, LLY.N, JBHT.OQ, EXC.N, MHK.N, RUN.OQ, TEP.N, MGA.N, ACE.N, JPM.N, CBS.N, MCD.N, MET.N) within the next 3 months. Credit Suisse has received compensation for products and services other than investment banking services from the subject company (WFC.N, ZION.OQ, LAZ.N, BEAV.OQ, INTC.OQ, GE.N, DLPH.N, ALL.N, DFS.N, KEY.N, SCHW.N, BAC.N, GS.N, BBT.N, TWX.N, DAL.N, RUN.OQ, MGA.N, ACE.N, JPM.N, CBS.N) within the past 12 months As of the date of this report, Credit Suisse makes a market in the following subject companies (CVS.N, HBI.N, DE.N, PNRA.OQ, LH.N, WFC.N, ASH.N, CE.N, XL.N, MMM.N, ZION.OQ, DVN.N, TOL.N, PRXL.OQ, DG.N, BEAV.OQ, NEE.N, NSM.N, LB.N, AAPL.OQ, CAR.OQ, HPQ.N, MON.N, AMG.N, MRO.N, SJM.N, INTC.OQ, GE.N, HD.N, MCK.N, MDLZ.OQ, RJF.N, LRCX.OQ, MU.OQ, GPOR.OQ, FB.OQ, UNP.N, CF.N, PNW.N, KBR.N, MPC.N, PVH.N, DRI.N, COST.OQ, MAR.OQ, DLPH.N, PDCE.OQ, SCTY.OQ, IR.N, MSFT.OQ, ALL.N, DFS.N, KEY.N, LOW.N, IT.N, PFE.N, SCHW.N, GOOGL.OQ, ADSK.OQ, SYY.N, V.N, BAC.N, GS.N, BBT.N, BSX.N, TSLA.OQ, TWX.N, SIX.N, BMY.N, AMZN.OQ, LLL.N, CAT.N, DAL.N, LUV.N, LLY.N, JBHT.OQ, EXC.N, MHK.N, ULTI.OQ, ACE.N, JPM.N, CBS.N, MCD.N, MET.N). As of the end of the preceding month, Credit Suisse beneficially own 1% or more of a class of common equity securities of (NRZ.N, STNG.N, DRI.N, RUN.OQ). Credit Suisse has a material conflict of interest with the subject company (WFC.N) . Credit Suisse is acting as a financial advisor to General Electric Co. (GE) in relation to their potential sale of GE Capital’s Commercial Distribution Finance, North American Vendor Finance and Corporate Finance platforms to Wells Fargo & Co. (WFC). Credit Suisse has a material conflict of interest with the subject company (MMM.N) . Credit Suisse Securities (USA) LLC is acting as financial advisor to 3M on the proposed acquisition of Ceradyne, Inc. Credit Suisse has a material conflict of interest with the subject company (INTC.OQ) . Credit Suisse Securities (USA) LLC is acting as financial advisor to Intel Corp (INTL) on its announced proposed acquisition of LSI’s Axxia Networking Business from Avago Technologies Limited (AVGO). Credit Suisse has a material conflict of interest with the subject company (GE.N) . Credit Suisse is acting as financial advisor to General Electric Company (GE) in connection with the announced proposed acquisition of certain assets from Alstom S.A. Credit Suisse is acting as exclusive financial advisors to Capital One Financial in relation to their potential acquisition of General Electric's U.S. Healthcare Finance Unit. Credit Suisse is acting as a financial advisor to General Electric Co. (GE) in relation to their potential sale of GE Capital’s Commercial Distribution Finance, North American Vendor Finance and Corporate Finance platforms to Wells Fargo & Co. (WFC). Credit Suisse is acting as as financial advisor General Electric Co. (GE) in relation to their potential sale of GE Capital, Transportation Finance business in the U.S. and Canada to BMO Financial Group (BMO). Credit Suisse has a material conflict of interest with the subject company (FB.OQ) . Credit Suisse has been named as a defendant in various putative shareholder classaction lawsuits relating to Facebook, Inc.’s May 2012 initial public offering. Credit Suisse’s practice is not to comment in research reports on pending litigations to which it is a party. Nothing in this report should be construed as an opinion on the merits or potential outcome of the lawsuits. As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (CVS.N). Training

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As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (WFC.N). As of the date of this report, an analyst involved in the preparation of this report, Susan Katzke, has following material conflicts of interest with the subject company. The analyst or a member of the analyst's household has a long position in the preferred stock Wells Fargo & Company (WFC). As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (AAPL.OQ). A Credit Suisse analyst involved in the preparation of this report has a long position in the common stock of AAPL. As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (PFE.N). As of the date of this report, an analyst involved in the preparation of this report, Vamil Divan, has following material conflicts of interest with the subject company. The analyst or a member of the analyst's household has a long position in the common stock Pfizer (PFE.N). A member of the analyst's household is an employee of Pfizer (PFE.N). As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (BAC.N). As of the date of this report, an analyst involved in the preparation of this report, Susan Katzke, has following material conflicts of interest with the subject company. The analyst or a member of the analyst's household has a long position in the preferred stock Bank of America Corp (BAC). As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (JPM.N). As of the date of this report, an analyst involved in the preparation of this report, Susan Katzke, has following material conflicts of interest with the subject company. The analyst or a member of the analyst's household has a long position in the common and preferred stock JPMorgan Chase & Co (JPM). Important Regional Disclosures Singapore recipients should contact Credit Suisse AG, Singapore Branch for any matters arising from this research report. The analyst(s) involved in the preparation of this report may participate in events hosted by the subject company, including site visits. Credit Suisse does not accept or permit analysts to accept payment or reimbursement for travel expenses associated with these events. Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares. Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report. For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit https://www.creditsuisse.com/sites/disclaimers-ib/en/canada-research-policy.html. The following disclosed European company/ies have estimates that comply with IFRS: (MMM.N, BMY.N). An analyst involved in the preparation of this report received third party benefits in connection with this research report from the subject company (CVS.N, HPQ.N) Credit Suisse has acted as lead manager or syndicate member in a public offering of securities for the subject company (DE.N, LH.N, WFC.N, MMM.N, TWOU.OQ, DVN.N, EQM.N, SPWH.OQ, SNCR.OQ, GGP.N, NRZ.N, NEE.N, NSM.N, ADI.OQ, SEE.N, AAPL.OQ, NLSN.N, STNG.N, JKS.N, HPQ.N, PF.N, GE.N, HD.N, SEP.N, MDLZ.OQ, MU.OQ, PMT.N, FB.OQ, ANET.N, UNP.N, GEL.N, FI.N, PVH.N, MAR.OQ, ALSN.N, DLPH.N, SCTY.OQ, IR.N, CSTE.OQ, MSFT.OQ, ALL.N, DFS.N, DATA.N, KEY.N, FANG.OQ, PFE.N, SCHW.N, GOOGL.OQ, BAC.N, GS.N, TWX.N, BMY.N, CP.N, DAL.N, LLY.N, EXC.N, RUN.OQ, TEP.N, ACE.N, JPM.N, CBS.N, MCD.N, MET.N) within the past 3 years. As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report. Principal is not guaranteed in the case of equities because equity prices are variable. Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that.

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