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Goldman Sachs: these 3 stocks can rise at least 40%
Let’s talk about volatility. The NASDAQ started this week with a drop in the correction territory, a drop to just over 10% below February’s peak. And now? After three trading sessions, the index recovered 5.5%. Behind the volatility is an economy that may be preparing to take off. The Goldman Sachs strategy team sees the February job numbers, along with COVID’s help package in Congress (the House has just passed the Senate version, sending the bill to President Biden’s desk), as net positives. Goldman economist Jan Hatzius predicts a GDP of 7.7% for 2021 and says of the immediate conditions: “The main reason we expect a hiring boom this year is that the reopening, fiscal stimulus and pent-up savings should fuel a very strong growth in demand. Following Hatzius’ optimism, Goldman’s stock analysts have been busy exploring the stocks they see as potential winners under current conditions. They have certain points in common that would increase investor interest: strong buy ratings and, according to Goldman, a potential of at least 40% increase in the next 12 months. Let’s find out what else makes these specific actions so attractive. Bioventus (BVS) The first Goldman choice we are looking at is Bioventus, a medical innovator. The company has an active development program focused on treatments to enhance the body’s natural healing abilities. The company’s goal is to promote healing through minimally invasive treatments that are clinically effective and economical. The company’s product line is focused on the skeletal system, with products to improve bone healing, joint therapies and bone graft surgical procedures. Bioventus is present in 30 countries around the world. In February of this year, Bioventus held its IPO, setting the initial price of the shares in the range of $ 16 to $ 18. When the shares started to be traded on the NASDAQ on February 11, the opening price was $ 13, below the range. The company placed 8 million shares on the market that day, and closed at a price of $ 18.43. The sale raised $ 153 million, with net revenue of $ 104 million for Bioventus. The next big data point for investors will come on March 25, when Bioventus will release its 4Q20 and full year results. Although these figures cover a period prior to the company’s IPO, the first quarterly report as a publicly traded company is always closely watched. Bioventus’ shares have fallen since they started trading – the stock fell 29% in its first month on the market. Goldman Sachs, however, believes that this new lower share price could offer new investors an opportunity to enter the VHL at low cost. In his note to Goldman, analyst Amit Hazan writes: “[We] see the recent underperformance of stocks offering a solid entry point into a story that includes a remarkable portfolio of joint preservation opportunities and ample M&A opportunities that are expected to offer a high likelihood of an increase in numbers in the coming years. ”The analyst added:“ The main growth drivers include: a strong portfolio in the best growth segment of the HA market; opportunities for participation in the bone graft market; a large presence of direct sales force and a network of independent distributors that can be leveraged as new products are introduced … ”To this end, Hazan evaluates the VHL as a purchase and his $ 19 price target suggests a potential for 42% growth in one year. (To see Hazan’s track record, click here) Wall Street analysts clearly like the VHL stock, as the 4 recent reviews are all purchases, making the strong consensus rating unanimous. The shares are currently quoted at $ 13.33, and the average target price of $ 19.25 implies a 44% increase for next year. (See VHL stock analysis at TipRanks) Salesforce.com (CRM) Next, Salesforce is one of the biggest names in the technology and marketing market. The company is a leader in Customer Relationship Management (CRM), taking its ticker even from its main products. Salesforce offers its customers cloud-based SaaS solutions to most of the front-end problems that marketing departments face on a daily basis. Salesforce’s shares have risen 40% in the past 12 months, as the company’s products and business model have proven to be easily adaptable to the pandemic-driven move toward remote offices and virtual commuting. After stable revenue in 1Q20, the company posted revenue gains in each of the following three quarters, as well as year-over-year gains. In the fourth quarter, the most recent reported, the company exceeded forecasts by a wide margin. Net revenue was US $ 5.82 billion, above the expected US $ 5.68 billion and 20% above the previous year. The LPA, at 28 cents, was a sharp turnaround in relation to the loss of 28 cents recorded in 4Q19. Also in the fourth quarter, Salesforce continued its efforts to acquire and integrate the Slack communication application. The acquisition is worth $ 27.7 billion and is expected to be completed by July 31 this year. Covering Salesforce for Goldman is 5-star analyst Kash Rangan, who writes: “Salesforce remains positioned to be one of the most strategic application software companies in the $ 1 trillion + TAM cloud industry, in our opinion. With a broad and expanding platform covering sales, services, e-commerce, marketing, BI / analytics, artificial intelligence, custom applications, integration and collaboration, we see Salesforce well positioned to capitalize on spending on accelerated digital transformation … ”Rangan shares CRM on your company’s belief list, with a purchase rating. Its $ 315 price target implies room for a 45% upward growth this year. (To see Rangan’s history, click here) A technology company the size and reach of Salesforce will always attract the attention of Wall Street – and the CRM actions have 24 recent reviews on file. Of these, 19 are for Buy with only 5 to Maintain, making the analyst’s consensus rating a Strong Buy. The average target price of $ 277.30 suggests a potential increase of 28% compared to the trading price of $ 216.80. (See TipRanks CRM inventory analysis) Jamf Holding (JAMF) High-tech products – laptops, tablets, smartphones and their accessories – have revolutionized the way we interact with each other, with our colleagues and customers, with our electronic devices. Jamf Holdings, a Wisconsin-based software company, specializes in producing IT administration products for Apple devices that run macOS, iOS, iPadOS and tvOS. Jamf’s products allow system administrators to manage groups of devices, create policies, restrict device resources, and even enable remote features such as configuration, locking and wiping. Apple has been one of the big growth stories of the market for the past decade, and Jamf offers investors a way to hitch a ride on the tech giant. Jamf held his IPO in July last year, and the shares quickly showed big gains. The 18 million shares put on the market started at $ 26 and gained 51% on the first day of trading. The company has also reported a steady increase in revenue since its IPO. 2Q20, the first quarter reported after the opening, showed $ 62 million in the top row; The third and fourth quarters showed US $ 70.4 million and US $ 76.4 million, respectively. The gains, as in many technology companies, show a net loss. In his JAMF coverage for Goldman Sachs, analyst Rod Hall sees the company with a clear path to follow. “We believe that Jamf’s unique remote management solutions for Apple products should continue to benefit the company, as remote work and study trends look like they are here to stay … Jamf noted that his top performance in the fourth quarter was driven by broad-based demand with> 25% Y / Y growth across all products, geographic areas and key sectors, ”noted Hall. Hall assigns a buy rating to Jamf’s shares, along with a target price of $ 52, which indicates a 40% bullish potential for the shares. (To view Hall’s history, click here) Strong Buy’s analyst consensus rating on JAMF is unanimous, based on 6 recent Buy-side reviews. The shares are quoted at $ 37.01 and their average price target of $ 47 suggests an increase of ~ 27% over the next 12 months. (See the JAMF stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.