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Goldman Sachs predicts more than 50% rally for these two stocks
Stocks started this year with a solid profit, which fell back last week and is now rising again. The big tech giants took the step, with volatility in Apple and Amazon leading the NASDAQ. The strategic team of investment bank Goldman Sachs has taken note of the upheavals in the market and is working out what this means for investors. According to macro strategist Gurpreet Gill, who is keeping a close eye on the yield on equities and equities, “the increase in global yields is a reflection of improved growth prospects, given encouraging progress with vaccines and in the US the coming major fiscal stimulus. [It] also indicates higher inflation expectations and in turn raised the expectations for the timing of the normalization of monetary policy. Monetary policy can be the key to investor concerns – and therefore the testimony of Federal Reserve Chairman Jerome Powell’s testimony to Congress is considered positive. The head of the central bank indicated in his comments to legislators that the Fed does not intend to raise interest rates any time soon. So far, the outlook is in line with forecasts by Goldman economist Jan Hatzius, who said earlier this year that the Fed would keep rates and that 2021 would be a good year for long positions on equities. So much for the macro outlook. At the micro level, in terms of individual stocks, Goldman’s analysts were looking for the stocks they believe will get if the current conditions apply for the short to medium term. In particular, they found two stocks that, according to them, have an upward potential of 50% or higher. Using the TipRanks database, we found that both tickets also contain a consensus rating of the rest of the street. Vinci Partners Investments (VINP) The first Goldman choice we are looking at is Vinci Partners, an alternative investment and asset management company in Brazil. The company offers clients a variety of services and funds, including access to hedge funds, real estate and infrastructure investments, private equity and credit investments. Vinci boasts a global reach and a leading position in the wealth management industry in Brazil. To start the new year, Vinci appeared on the NASDAQ index. VINP shares started trading at $ 17.70 on January 28, slightly below the initial price of $ 18. The first day’s trading sold 13.87 million shares of VINP. After about 4 weeks in the public markets, Vinci has a market capitalization of $ 910 million. Analyst Tito Labarta, who covers this stock for Goldman Sachs, describes Vinci as a well-diversified asset platform with strong growth potential. ‘We think Vinci is well positioned to gain share and exceed market growth given strong competitive advantages. Vinci has one of the most diverse products among its alternative asset management partners, with seven different investment strategies and 261 funds. In addition, Vinci has surpassed its standards in all strategies, with a strong record and recognition 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, including participation in events and webinars, “says Labarta. In line with its optimistic outlook, Labarta rate VINP a Buy, and its price target of $ 39 implies an impressive upward potential of 141% for the coming year. (To see Labarta’s record, click here) One month on the NASDAQ, Vinci received positive attention from Wall Street analysts brought in, with a 3 to 1 split of the reviews favoring Buys over Holds and giving the stock its consensus rating from Strong Buy analyst.The stock is currently selling for $ 16.15 and its average price target of $ 26.75 indicates that it will have room for ~ 66% growth in the next 12 months. (View VINP stock analysis at TipRanks) Ortho Clinical Diagnostics Holdings (OCDX) Goldman Sachs analysts have Ortho Clinic al Diagnostics also pointed out as a potential winner for investors. , a leader in in vitro diagnostics, works with hospitals, clinics, laboratories and blood banks around the world to deliver fast, safe and accurate test results. Ortho Clinical Diagnostics has several important ‘firsts’ in its industry: it was the first company to deliver a diagnostic test for Rh +/- blood tick, for the detection of HIV and HEP-C antibodies, and recently worked more to COVID- 19 tests. Ortho is the world’s largest pure-play in vitro diagnostic company, handling more than 1 million tests every day, from more than 800,000 patients around the world. Like Vinci Partners above, this company was launched on January 28th. In the exchange, Ortho put 76 million shares on the market, and traded on the first day at $ 15.50, lower than the initial price of $ 17. Nevertheless, the IPO raised $ 1.22 billion in gross funds, and the option for the award of the underwriters brought in another $ 193 million. Matthew Sykes, analyst at Goldman Sachs, believes that the company’s growth performance in the past justifies a positive sentiment, and that Ortho is able to reduce its balance sheet. “The key to the OCDX stock story is to successfully restore their organic growth rate to a sustainable 5-7% from a historical rate of approximately flat. Given the profitability and potential FCF generation, OCDX could restore growth, they could reduce the balance sheet and increase their level of inorganic and organic investments to create a sustainable growth algorithm, ‘Sykes wrote. The analyst added: “We believe the main growth driver is driven by the increase in OCDX’s lifelong customer value. through a transition in the product range of their clinical laboratory business from a stand-alone clinical chemistry instrument to an integrated platform and eventually to an automated This transition takes place largely within their own client base, and is therefore not dependent on relocation, but serves rather than the need to increase the throughput of the customer’s diagnostic capabilities. Sykes rates OCDX a Buy and sets a price of $ 27 At current levels, this implies an upward one-year lead of 51% (to see Sykes’ record, click here.) Ortho has a long history of getting results for its to deliver customers, and Wall Street is in a mood to judge. OCDX shares receive a strong buy from the analyst’s consensus, based on 9 Buy reviews launched since the IPO – against a single Hold. The average price target is $ 23.80, indicating an upward potential of 33% from the current trading price of $ 17.83. (See OCDX stock analysis on TipRanks.) To find great ideas for stocks trading at attractive valuations, visit TipRanks’ best-selling stocks, a newly introduced tool that unites all TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.