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Goldman Sachs predicts these two stocks will rally over 50%
Stocks started this year on strong gains that fell last week and are now rising again. The big tech giants led the moves, with volatility on Apple and Amazon leading the NASDAQ on its spins. The strategy team at investment bank Goldman Sachs has taken note of the market changes and worked out what this means for investors. Macro strategist Gurpreet Gill, who is closely monitoring bond yields and stock values, said, “The rise in global yields reflects the improved growth prospects to be expected given encouraging vaccine progress and significant fiscal stimulus ahead in the US. [It] also signals higher inflation expectations and in turn pulled forward expectations for the timing of monetary policy normalization. “Monetary policy can be the key to allaying investor worries – and in that regard, Federal Reserve Chairman Jerome Powell’s testimony to Congress is valued positively. In his comments to lawmakers, the head of the central bank pointed out that the Fed had no plans to raise interest rates anytime soon. So far, the outlook has been in line with predictions from Goldman economist Jan Hatzius, who earlier this year expressed his belief that the Fed would hold rates and that 2021 will be a good year for long equities. So much for the macro outlook. At the micro level, Goldman analysts have been busy finding the stocks they think will win if current conditions persist in the short to medium term. In particular, they found two stocks that they believed had 50% or more upside potential. Using TipRanks’ database, we found that both tickers also had a consensus rating of “Strong Buy” from the rest of the street. Vinci Partners Investments (VINP) The first Goldman selection we look at is Vinci Partners, an alternative investment and wealth management firm based in Brazil. The company offers a range of services and funds to its clients, including access to hedge funds, real estate and infrastructure investments, private equity and credit investments. Vinci has global reach and a leadership position in the Brazilian wealth management industry. At the beginning of the new year, Vinci went public in the NASDAQ index. VINP shares traded at $ 17.70 on Jan. 28, slightly below the company’s original price of $ 18. On the first day of trading, 13.87 million VINP shares were offered for sale. After about four weeks in the public markets, Vinci has a market cap of $ 910 million. Analyst Tito Labarta covers this stock for Goldman Sachs and describes Vinci as a well diversified wealth platform with strong growth potential. “We believe Vinci is well positioned to gain market share and outperform market growth in the face of strong competitive advantage. With seven different investment strategies and 261 funds, Vinci has one of the most diverse product offerings among its colleagues in the field of alternative asset management. In addition, Vinci has outperformed its benchmarks across all strategies, has a strong track record, and has received awards from relevant institutions such as Institutional Investor, Morningstar, Exame and InfoMoney. The company has developed strong communication tools to strengthen its brand and institutional presence in the Brazilian market, such as podcasts, seminars, investor days with IFAs and other participation in events and webinars, “said Labarta, assessing VINP with a purchase and its target price of $ 39 implies an impressive upside of 141% for the coming year. (To see Labarta’s track record, click here) A month on NASDAQ has brought Vinci with a 3 positive attention from Wall Street analysts The stock is currently trading for 16 , Sold $ 15, and its average price target of $ 26.75 suggests it has room for ~ 66% growth over the next 12 months. See VINP stock analysis at TipRanks. Ortho Clinical Diagnostics Holdings (OCDX) Die Goldman Sachs analysts have also identified Ortho Clinical Diagnostics as a potential winner for investors, The Un The company is a leader in in vitro diagnostics and works with hospitals, clinics, laboratories and blood banks around the world to deliver fast, safe and accurate test results. Ortho Clinical Diagnostics has several major novelties in its industry: It was the first company to provide a diagnostic test for the Rh +/- blood group for the detection of HIV and HEP-C antibodies, and more recently it has been involved in COVID- worked. 19 tests. Ortho is the world’s largest all-in-vitro diagnostic company, performing over 1 million tests on more than 800,000 patients around the world every day. Like Vinci Partners above, this company went public on January 28th. When Ortho went public, it launched 76 million shares. Trading on the first day was $ 15.50, down from the original price of $ 17. Even so, the IPO raised gross funds of $ 1.22 billion and the subscribers’ over-allotment option raised an additional $ 193 million. Goldman Sachs analyst Matthew Sykes believes the company’s past growth performance warrants positive sentiment and that Ortho is poised to cut its balance sheet. “The key to OCDX’s stock history is to roll back the organic growth rate from a historical pace of roughly unchanged to 5-7% consistently. Given the profitability and potential FCF generation, OCDX could roll back growth to ease the burden on the balance sheet and increase the growth inorganic and organic investments to create a sustainable growth algorithm, “wrote Sykes. The analyst added: “From our point of view the most important growth driver is the increase in the customer value of OCDX for life, which is achieved by the transition of the product range of the Clinical Lab business from a stand-alone instrument for clinical chemistry to an integrated platform and ultimately to an automated platform This transition takes place largely within its own customer base and is therefore not dependent on the shift, but rather serves the need to increase the throughput of a customer’s diagnostic functions. To this end, Sykes values OCDX with a purchase price and sets a price Target of $ 27 fixed target. At current levels, that’s a year-long upward movement of 51%. (To see Sykes’ track record, click here.) Ortho has a long history of delivering results for its clients and the Wall Street is in the mood to rate these OCDX stocks old a strong buy from analyst consensus based on 9 buy ratings set since going public – versus just a single hold. The average price target is $ 23.80, which indicates an upside potential of ~ 33% from the current trading price of $ 17.83. (See OCDX stock analysis on TipRanks.) To find good ideas for trading stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, ‘a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
