Goldman Sachs has refreshed its lists of top global stock picks, adding some and removing others. The stocks are featured in the investment bank’s “Conviction List – Directors’ Cut,” which it says offers a “curated and active” list of buy-rated stocks. They are selected by a subcommittee in each region which “collaborate with each sector analyst to identify top ideas that offer a combination of conviction, a differentiated view and high risk-adjusted returns,” Goldman Sachs says. Companies that were removed from the list for October include Qantas Airways and Chinese semiconductor firm GigaDevice in Asia-Pacific, as well as oil major Shell and Italian fashion house Zegna in Europe. There have also been plenty of additions to the Directors’ Cut, including the following three stocks which Goldman also gives more than 20% upside potential over the next 12 months. Experian Experian , a Danish data company known for offering consumer credit scores, is one such stock. “Experian has performed well [year-to-date], which has left investors questioning where the next leg of upside can come from,” the investment bank said. Analyst Suhasini Varanasi believes the company is “unlocking a data ecosystem (which) will drive a step-up in growth and margins.” Experian’s investments in new products and services are “now at a tipping point and should support a step-up in organic revenue growth,” she wrote in the bank’s Oct.1 note on its Europe list. These developments, she added, are likely to push the company’s organic revenue growth to 9.5% between full-year 2026 and 2029, up from historical levels of between 5% and 7%. Shares in Experian are listed on the London Stock Exchange and as an American Depositary Receipt (ADR) in the U.S. Its shares are up around 22.2% year-to-date. Goldman has a 12-month target price of £52 ($68) on the stock, implying nearly 33% potential upside. Generali Italian insurer Assicurazioni Generali was another stock that made Goldman’s list. The bank’s analyst Andrew Baker likes that the company is “well positioned for central bank policy rate easing.” “The company faces the greatest competition from non-insurance savings products, and declining short-term interest rates should help alleviate lapse concerns,” he added in the bank’s Oct. 1 note on its Europe list. Baker also flagged that around 90% of Generali’s property-casualty business is retail, compared to 55% on average among competitors, and he “likes the risk-reward from the retail bias.” The stock, which is up around 37% year-to-date, trade on the Milan Stock Exchange and are also included in the iShares MSCI Italy ETF (4.9% weighting), among other exchange traded funds. Goldman has a target price of 31.50 euros ($34.50) on the stock, implying 20/5% potential upside. Keppel On Goldman’s Asia-Pacific list is Singapore conglomerate Keppel , which works across property, infrastructure and asset management. In analyst Xuan Tan’s view, the stock stands to gain from growth in its infrastructure segment, which is “well poised to benefit from structurally higher electricity demand and energy transition.” Keppel’s capacity expansion of around 50% to 1,900 megawatts in 2026 can further enable to “capture this longer term opportunity,” Tan wrote in an Oct. 2 note on the bank’s Asia list. The analyst also sees potential for future acquisitions as it pushes ahead with its interim divestment target of 5-7 billion Singapore dollars ($3.8 billion-$5.4 billion). Shares in Keppel trade on the Singapore Exchange and as an ADR in the U.S. Year-to-date its shares are down over 8%. Goldman has a target price of 7.80 Singapore dollars on the stock, implying 20.4% potential upside. — CNBC’s Michael Bloom contributed to this report.
Goldman Sachs just refreshed its conviction lists of global stocks, giving 3 over 20% upside
Oct 14, 2024
