Here are 5 top stock ideas from Jefferies — including Madison Square Garden
Jefferies shared with its clients the firm's best current stock picks. The firm looked for companies with below average Wall Street coverage and where its analysts are particularly optimistic over the stock's fundamentals. "We highlight 35 stocks covered by Jefferies that are above $1B in cap, which sit in the coverage sweet spot of 3 to 10 analysts and where analysts have particular conviction," the firm's research group said in a report Monday. "The combination of an interesting stock that also has below average sell-side coverage is probably always worthy of highlighting, as the stories are not as well known." Here are five buy-rated companies that made the Jefferies recommended list and their price targets. 1) Madison Square Garden (MSG) Jefferies analyst John Janedis set a price target for Madison Square Garden shares at $350, which is 12.5 percent above Friday's closing price. "MSG is in a unique position to capitalize on the rising value of the sports and entertainment assets, both of which are underappreciated by investors...With the proposed transaction to separate the businesses, he expects the gap between public and private market value to narrow." 2) Peabody Energy (BTU) The firm's analyst Chris LaFemina has a $55 price target for Peabody Energy shares, representing 28 percent upside to Friday's close. "While Chris expects LT continued declines in thermal and coking coal prices will eventually be a headwind, the cash generation at the company makes it a compelling investment. Chris highlights that Peabody is the only pure-play coal miner with large scale operations in the US and Australia and exposure to thermal and metallurgical coal." 3) Arris (ARRS) Jefferies analyst George Notter has a price target for Arris shares of $38, which is 60 percent higher than Friday's close. "George believes investor sentiment on STBs [set top boxes] is too negative, which is supported by solid existing customer demand, international share gains, and next generation STB development. In addition, the company has been able to revise pricing with multiple customers, which should help offset memory costs." 4) Lamb Weston (LW) The firm's analyst Akshay Jagdale has an $80 price target for Lamb Weston shares, representing 11 percent upside to Friday's close. "Akshay favors LW due to its unique category exposure in potatoes, strong market positioning, FCF profile and long-term margin expansion opportunity. Despite meaningful planned increases in industry capacity over the next couple of years, he expects industry capacity utilization rates to remain above historical averages, continuing to support pricing power and margin expansion for the industry." 5) FirstCash (FCFS) Jefferies analyst John Hecht set a price target for FirstCash shares at $109, which is 37 percent above Friday's close. "John remains bullish on shares based on growth in the underbanked LatAm region and strong US core business fundamentals leading to strong cash flow. ... He anticipates US retail comps will return to positive in 2H18 as the Cash America integration bears fruit. In addition, FCF generation is strong, nearly 2x the level of net income, and the stock offers a 6% FCF yield."

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