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These Stocks Are Expected To Rise More Than 70%

April 11, 2023
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A few of Goldman Sachs' stock ratings were reviewed in light of recent volatility, and some of them were kept as they were, and others were upgraded.

The Wall Street bank has raised some of its price targets for some of these stocks, so they possess a huge upside potential, as some of them are on the conviction buy list.

The following are the stocks to consider.

Clean technology stocks

A report published on March 29 by Goldman Sachs indicated the firm expected SolarEdge Technologies to reach $420 in the coming year, which would represent a nearly 50% increase in price.

According to the report, the company continues to hold a "tactically more bullish view" on SolarEdge, a stock on Goldman's list of conviction buys as well.

In its report, the bank said it expects the firm's gross margin recovery to continue to outperform in the near future, because there are still many upside drivers that need to be fully realized, such as tax credits sponsored by the U.S. Inflation Reduction Act.

“The specter of potential upside and leverage to any further European policy support (e.g. IRA) would make SEDG well-positioned to see further upside in numbers, in our view,” Goldman analysts wrote. The EU in January announced new green proposals to rival the U.S. Inflation Reduction Act.

Earlier in the day, the bank upgraded Fluence Energy, a company that provides energy storage solutions, from a neutral rating to a buy rating, with a target price of $29 - representing a 44% increase in value.

Fluence's positive outlook is attributed to the company's "better visibility" with respect to the company's "improving gross margin trajectory" and "high growth in the energy storage market" as factors that may contribute to its positive outlook.

Mercedes-Benz

According to an April 6 note from Goldman Sachs, the automaker will be priced at 96 euros ($105), or a 42% upside from this year's price.

According to the report, Mercedes is expected to remain a best-in-class execution company, and the company's technology capabilities are not being taken advantage of by the market at present.

In addition to Mercedes, Goldman also has a list of conviction buys on its website.

Financial services and insurance stocks

In a recent upgrade by Goldman Sachs, the rating on insurer Corebridge Financial was upgraded to buy with a $3 price target, yielding a 44% potential upside.

Analysts for the bank report that, despite the firm's relatively benign liability profile, its valuation is depressed and lower than its peers. According to the bank's analysts, they expect the stock to rise due to pricing pressure driven by depressed valuation pressures not reflecting the firm's asset and liability risk profile.

In addition to that, Corebridge does not see regional bank difficulties as a "material risk" regarding its cash flows even though there are pressures on its stock price that are related to the difficulties of regional banks.

A conviction buy rating has been maintained for Equitable Holdings, which is on the bank's conviction buy list and has a buy rating.

There was a price target of $43 given to the stock, implying a 74% increase in price.

As part of the firm's growth strategy, Goldman said the firm plans to focus on potential exposure to commercial mortgage loans, particularly in the office sector.

Even with the substantial [commercial mortgage loan] exposure, Goldman analysts noted that EQH managed its stress test quite well, retaining a comfortable surplus capital position to absorb corporate credit and [commercial real estate] stress.

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Cathy Hills
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Eric Ng
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John Liu
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Bryan Curtis
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Adan Harris
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Cathy Hills
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