Goldman Sachs predicts rally of more than 50% for these 2 stocks
Stocks started this year with big gains, retreated slightly last week, and are on the rise again. The big tech giants led the moves, with volatility from Apple and Amazon leading the NASDAQ in its moves. The strategy team at investment bank Goldman Sachs has taken note of the market turmoil and is working on what it means for investors. According to macroeconomic strategist Gurpreet Gill, looking closely at bond yields and stock values, “The rise in global yields is a reflection of improving growth prospects given the encouraging progress in vaccines and in the United States, imminent fiscal stimulus. [It] Also signals higher inflation expectations and, in turn, raised expectations about the timing of monetary policy normalization. Monetary policy may be the key to allaying investor concerns – and on this point, Federal Reserve Chairman Jerome Powell’s testimony to Congress is viewed as positive. In his comments to lawmakers, the central bank chief said the Fed has no plans to raise interest rates anytime soon. So far, the outlook is in line with forecasts from Goldman economist Jan Hatzius, who said earlier this year that the Fed will keep rates tight and that 2021 will be a good year for long positions in equities. . So much for the macroeconomic outlook. At the micro level, turning to individual stocks, Goldman analysts have been busy locating stocks that they believe will win if current conditions hold over the short to medium term. They found two stocks in particular with, in their opinion, upside potential of 50% or more. Using the TipRanks database, we discovered that both tickers also sport a “Strong Buy” consensus rating from the rest of the street. Vinci Partners Investments (VINP) The Goldman top pick we are looking for is Vinci Partners, an alternative investment and asset management company based in Brazil. The company offers its clients a range of services and funds, including access to hedge funds, real estate and infrastructure investments, private equity and credit investments. Vinci enjoys global reach and a leading position in the wealth management industry in Brazil. To start the new year, Vinci went public on the NASDAQ index. Shares of VINP started trading on Jan. 28 at $ 17.70, slightly below the company’s original price of $ 18. On the first day of trading, 13.87 million shares of VINP were put up for sale. After about 4 weeks on the public markets, Vinci has a market cap of $ 910 million. Covering this title for Goldman Sachs, analyst Tito Labarta describes Vinci as a well-diversified asset platform with strong growth potential. “We believe Vinci is well positioned to gain share and outperform market growth with strong competitive advantages. Vinci offers one of the most diverse product offerings among its alternative asset management peers, with seven different investment strategies and 261 funds. In addition, Vinci outperformed its benchmarks in all strategies, having a solid track record and being recognized with 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, among other participation in events and webinars, ”said Labarta. In line with its bullish outlook, Labarta is pricing VINP at Buy, and its price target of $ 39 implies an impressive upside potential of 141% for the coming year (to look at Labarta’s history, click here) NASDAQ drew Vinci’s positive attention from Wall Street analysts, with a 3: 1 split in reviews favoring buy over holds and giving the stock its consensus rating as a Strong Buy analyst. The stock is currently selling for $ 16.15 and its average price target of $ 26.75 suggests there is room for ~ 66% growth over the next 12 months. (See VINP stock market analysis on TipRanks) Ortho Clinical Diagnostics Holdings (OCDX) Goldman Sachs analysts also highlighted Ortho Clinical Diagnostics as a potential winner for investors. , a leader in in vitro diagnostics, works with hospitals, clinics, laboratories and blood banks around the world to provide fast, safe and accurate test results. Ortho Clinical Diagnostics has several important “ firsts ” in its industry: it was the first company to provide a diagnostic test for the Rh +/- blood group, for the detection of anti-HIV and HEP-C antibodies, and most recently worked on COVID- 19 tests. Ortho is the world’s largest pure-play in vitro diagnostics company, processing more than one million tests every day from more than 800,000 patients around the world. Like Vinci Partners above, this company went public on January 28. The IPO saw Ortho put 76 million shares on the market, with day one trading opening at $ 15.50, below the original price of $ 17. Despite this, the IPO raised $ 1.22 billion in gross funds, and the underwriters’ over-allotment option brought in an additional $ 193 million. Matthew Sykes, analyst at Goldman Sachs, believes the company’s past growth performance warrants positive sentiment and that Ortho is capable of deleveraging its balance sheet. “The key to the stock story for OCDX is to successfully reset their organic growth rate to a sustainable 5-7% rate from a roughly stable historical rate.” Considering the level of profitability and the potential generation of FCF, if OCDX were to reset growth, they could remove the balance sheet and increase their level of inorganic and organic investments to create a sustainable growth algorithm, ”Sykes wrote. The analyst added, “The primary driver of growth in our view is the increased lifetime customer value of OCDX, driven by a product-wide shift from their clinical laboratory business to a clinical instrument. autonomous clinical chemistry to an integrated platform and ultimately to an automated system. Much of this transition takes place within their own customer base and therefore does not depend on travel, but rather addresses the need to increase the throughput of a customer’s diagnostic capabilities. To this end, Sykes evaluates OCDX a Buy and sets a target price of $ 27. At current levels, this implies a one-year increase of 51%. (To view Sykes’ track record, click here) Ortho has a long history of results for its clients, and Wall Street is in the mood to assess OCDX stocks get strong buy by analyst consensus, based on 9 reviews purchase established since the IPO – against a single Hold. The average price target is $ 23.80, indicating a potential upside of approximately 33% from the current price of $ 17.83. (See OCDX Stock Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.