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Goldman Sachs predicts an increase of more than 50% for these 2 stocks
The stock started this year with weight gains, retreated last week and are now rising again. The big tech giants led the moves, with volatility in Apple and Amazon leading the NASDAQ in their spins. The investment bank’s strategy team Goldman Sachs has noticed changes in the market and are finding out what this means for investors. According to macro strategist Gurpreet Gill, looking closely at bond yields and stock values, “The increase in global yields is a reflection of the better growth prospects, given the encouraging progress of the vaccine and the next sizeable fiscal stimulus in the US . [It] it also signals higher inflation expectations and, in turn, raised expectations about the moment of monetary policy normalization. ”Monetary policy may be the key to allay investor concerns – and in that respect, Federal Reserve Chairman Jerome Powell’s testimony to Congress is seen as positive. In his comments to lawmakers, the central bank president indicated that the Fed has no intention of raising interest rates anytime soon. So far, the outlook is in line with predictions made by Goldman economist Jan Hatzius, who said he believes earlier this year that the Fed will keep interest rates tight and that 2021 will be a good year for long-term equity positions. Enough of the macro perspective. At the micro level, turning to individual stocks, Goldman analysts are busy locating the stocks they believe will win if current conditions remain in the short to medium term. They found two shares in particular with, in their opinion, a 50% or more appreciation potential. Using the TipRanks database, we found that both tickers also exhibit a “strong buy” consensus rating from the rest of the Street. Vinci Partners Investments (VINP) Goldman’s first choice we are looking at is Vinci Partners, an alternative investment and asset management company based in Brazil. The company offers clients a range of services and funds, including access to hedge funds, real estate and infrastructure investment, private equity and credit investment. Vinci has a 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. VINP’s shares began trading on January 28, at $ 17.70, slightly below the company’s initial price of $ 18. The first day’s trading saw 13.87 million VINP shares for sale. After about 4 weeks in the public markets, Vinci has a market capitalization of $ 910 million. Covering these shares for Goldman Sachs, analyst Tito Labarta describes Vinci as a well-diversified asset platform with strong growth potential. “We believe that Vinci is well positioned to gain market share and overcome market growth, given its strong competitive advantages. Vinci has one of the most diverse product offerings among its alternative asset management peers, with seven different investment strategies and 261 funds. In addition, Vinci surpassed its benchmarks in all strategies, having a strong 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 reinforce its brand and institutional presence in the Brazilian market, such as podcasts, seminars, investor days with IFAs, among other participations in events and webinars ”, said Labarta. In line with his optimistic outlook, Labarta values VINP a Buy, and its $ 39 target price implies an impressive 141% appreciation potential for the coming year. (To see the history of Labarta, click here) A month on the NASDAQ attracted the positive attention of Wall Street analysts for Vinci, with a 3-to-1 split in ratings favoring purchases over retentions and giving the stock its consensus rating of strong buying analyst. The stock is selling for $ 16.15 and its average target price of $ 26.75 suggests it has room for ~ 66% growth in the next 12 months. (See VINP stock analysis at TipRanks) Ortho Clinical Diagnostics Holdings (OCDX) Goldman Sachs analysts also pointed out Ortho Clinical Diagnostics as a potential winner for investors. , a leader in the field of in vitro diagnostics, works with hospitals, clinics, laboratories and blood banks worldwide to provide fast, safe and accurate test results. Ortho Clinical Diagnostics has several important ‘first’ in its industry: it was the first company to provide a diagnostic test for Rh +/- blood typing, for the detection of HIV and HEP-C antibodies, and most recently has been working at COVID- 19 tests. Ortho is the largest pure in vitro diagnostic company in the world, handling more than 1 million tests every day, from more than 800,000 patients worldwide. Like Vinci Partners above, this company went public on 28 January. The IPO saw Ortho put 76 million shares on the market, with the first day opening at $ 15.50, below the starting price of $ 17. Even so, the IPO raised $ 1.22 billion in gross funds, and the option of a supplementary batch of subscribers brought an additional US $ 193 million. Goldman Sachs analyst Matthew Sykes believes that the company’s growth performance in the past justifies a positive feeling and that Ortho is capable of deleveraging its balance sheet. “The key to OCDX’s heritage history is to successfully reset its organic growth rate to a durable 5-7% from a virtually stable historical pace. Given the level of profitability and potential FCF generation, if OCDX redefined the growth, they could de-balance the balance and increase their level of inorganic and organic investments to create a durable growth algorithm, “wrote Sykes. The analyst added: “The main driver of growth, in our opinion, is the increase in the lifetime value of OCDX for the customer, driven by a transition in the range of products from its Clinical Laboratory business from an independent clinical chemistry instrument to an independent clinical chemistry instrument. integrated platform and, finally, to an automated platform. This transition is occurring largely within its own customer base, therefore, it does not depend on the displacement, but rather meeting the need to increase a customer’s diagnostic capacity. Finally, Sykes evaluates OCDX to Buy and sets a target price of $ 27. At current levels, this implies a 51% increase in one year. (To view Sykes history, click here) Ortho has a long history of delivering results to its customers, and that makes Wall Street eager to value the stock well. OCDX’s shares get a strong buy from the analyst consensus, based on 9 buy reviews defined since the IPO – against just a retention. The average target price is $ 23.80, indicating a potential increase of ~ 33% from the current trading price of $ 17.83. (See the OCDX 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 gathers all the information about TipRanks shares. 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 investment.