Credit Suisse Adds 10 Names To European 'Top Picks'

Big Beer was among the additions to a list of more than 100 "top picks" among European equities published Wednesday by Credit Suisse.

Belgium-based Anheuser Busch Inbev SA BUD made the cut based on its potential for wider margins along with a possibly higher dividend and share buyback program.

Credit Suisse's Brandon Vair added 10 new players to company's periodically published roll call of 106 European stocks it thinks will be top performers.

Also newly landed on the list: Zurich Insurance Group Ltd. ZURVY. Despite pain from the strengthening Swiss franc, Vair said the company stands to gain from further cost cutting and the exit from non-core operations.

Moreover, Zurich Insurance's dividend makes it "among the highest-yielding in its sector," according to Vair.

Basel-based Novartis AG NVS "remains a top pick" for Vair. Foreign exchange moves could hurt franc-denominated profits, "but not the underlying competitive position," Vair said.

In the technology sector, Vair likes French-based Alcatel Lucent SA ALU and Cap Gemini S.A., which trades on the Euronext exchange under the symbol CAP.

Cap's rich balance sheet suggests an acquisition or buyback in the works, while Alcatel "remains on track" in a shift to becoming a networking and broadband provider.

Among industrials newly making Vair's list is French defense contractor Thales SA THLEY, where orders have picked up nicely in recent months and profits have hit a 15-year high.

Also favored is British-based G4S plc GFS, which provides a range of security services ranging from body guards for executives and rock stars, to offering advise on crowd control and delivering large amounts of cash.

Cost-cutting and improved efficiency could boost G4S results, Vair said.

Luxembourg staffing company Regus PLC RGU is focused on opening as many retail branches as possible "to create long-term value," in Vair's view.

The Netherlands-based materials concern Akzo Nobel N.V. AKZOY will benefit from lower oil prices and a wider margin in its decorative paints and performance coatings segments.

Finally, the British-based gas and electric utility Centrica PLC (ADR) CPYYY stands to gain from lower commodity costs while reduced capital spending will protect cash flow, Vair said.