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Goldman Sachs Analysts Identify Global Stocks Trading at Discount
Bullish Picks for Potential Upside
Analysts at Goldman Sachs have selected several global stocks that they believe are currently trading at a discount. They suggest that two of their picks have the potential to increase by over 100% in the next 12 months. The analysts, led by John Sawtell, explain that these stocks are trading below historical and market averages, and they see upside potential in their earnings. Among their top picks is telecommunications company BT Group, which they estimate could rise by 130% in the next year. Analyst Andrew Lee at Goldman Sachs supports this forecast with the belief that deregulation will benefit well-positioned operators like BT.
Additional Stock Picks
Goldman Sachs has also identified other stocks that they believe are undervalued and offer significant upside potential. British bank Natwest is one such pick, with Goldman Sachs projecting a potential rise of up to 111%. Deutsche Bank is another stock on their list, with a predicted 99% upside to its price target within 12 months. Lloyds Bank and South African technology group Naspers are also identified as stocks with potential upside of 78% and 71%, respectively.
Value Buys with Earnings Upside Potential
The stocks highlighted by Goldman Sachs are part of their list called "value buys with earnings upside potential." Their selection criteria includes Buy rated stocks that are currently trading at attractive valuations compared to their historical data and the wider market. These stocks have the added benefit of analysts identifying potential risks to consensus earnings per share in 2023/24.
Other Promising Stock Picks
Goldman Sachs also includes Italian bank Intesa Sanpaolo on the list due to its new digital bank Isybank, which they see as having a strong fintech strategy. They predict a potential upside of 58% to Intesa Sanpaolo's 12-month price target. Additionally, carmaker Porsche is highlighted for its attractive equity story and focus on the transition to battery electric vehicles. Goldman Sachs suggests that Porsche could rise by 33% over the next 12 months.
In conclusion, Goldman Sachs analysts have identified a number of global stocks that are trading at a discount and have the potential for significant growth. These stocks span various sectors, including telecommunications, banking, technology, and automotive. Investors looking for value and upside potential may want to consider these picks as part of their investment strategies.
Hot Take: How Goldman Sachs' Stock Picks Impact New Businesses
Goldman Sachs' identification of global stocks trading at a discount and their potential for significant growth can have a profound impact on new businesses. Here's a hot take on how this topic may influence budding enterprises:
1. Investment Opportunities: The stocks highlighted by Goldman Sachs present attractive investment opportunities for new businesses looking to diversify their portfolios or expand their investments beyond their core operations. By investing in undervalued stocks with potential upside, businesses can potentially boost their financial returns and pave the way for future growth.
2. Industry Insights: Goldman Sachs' analysis sheds light on sectors such as telecommunications, banking, technology, and automotive, where stocks are trading below historical and market averages. For new businesses in these industries, this information can serve as valuable market intelligence. By understanding the trends and potential growth of these sectors, entrepreneurs can make informed strategic decisions for their own ventures.
3. Partnering and Collaboration: The identification of promising stocks can also open doors for partnerships and collaborations between new businesses and the companies highlighted by Goldman Sachs. For example, telecommunications companies like BT Group, with their predicted potential increase, may offer opportunities for collaboration, joint ventures, or strategic partnerships for startups in the technology or communications space.
4. Industry Trends: Goldman Sachs' focus on stocks related to fintech, digital banking, and electric vehicles provides critical insights into emerging industry trends. New businesses operating in these sectors can take cues from the stocks identified and incorporate these trends into their own business strategies. This can help them adapt to changing market dynamics and position themselves as innovative leaders within their respective industries.
5. Investor Confidence: When reputable financial institutions like Goldman Sachs endorse certain stocks, it often instills confidence in investors. This can positively impact new businesses seeking funding or looking to go public. The identification of undervalued stocks by Goldman Sachs can indirectly enhance the overall investor sentiment within the market, potentially creating more favorable conditions for new businesses to secure financing or attract investment.
In summary, Goldman Sachs' analysis of global stocks offers new businesses investment opportunities, industry insights, potential partnerships, trend awareness, and increased investor confidence. By leveraging these insights effectively, entrepreneurs can make informed decisions and navigate the business landscape with greater success.
Article First Published at: https://www.cnbc.com/2023/07/12/goldman-says-buy-these-2-european-shares-with-upside-of-more-than-100percent.html