Goldman Sachs Predicts a 64% Surge in These Stocks
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Goldman Sachs Predicts 64% Surge for These Stocks
Goldman Sachs has revamped its list of stocks to watch for September, featuring three new entries poised for substantial potential returns while also considering risk factors.
The performance of the stock market stands to improve should the Democratic Party and Kamala Harris secure victory in the upcoming presidential elections.
Goldman Sachs believes that Harris’s fiscal stimulus measures will contribute to modest economic growth and increased job creation.
This, in turn, could provide an additional boost to the stocks featured in their updated list.
New Additions to Goldman Sachs’ “Conviction List”
1) Glencore
Glencore, the Anglo-Swiss mining giant, is included for its favorable positioning in the copper market, driven by rising demand linked to the energy transition and challenges in sourcing raw materials.
With a projected compound annual growth rate (CAGR) of 7% from 2025 to 2028, Glencore is well-equipped for expansion, featuring low-risk financial projects.
Despite a 21.5% drop since the start of the year on the London Stock Exchange, the stock has garnered positive assessments from Goldman Sachs and other prominent investment banks.
Goldman set a target price of 520 British pence, indicating a potential upside of about 39%.
UBS shares the bullish sentiment, while Jefferies rates it as a buy with a target of 600 pence, suggesting a 60% increase.
2) Sumitomo Mitsui Financial Group
Sumitomo Mitsui Financial Group (SMFG) emerges as another key player on Goldman Sachs’s list, benefiting from strategic factors including the normalization of interest rates by the Bank of Japan, which favors companies in the Japanese financial sector.
Furthermore, the bank is enhancing its corporate governance, projecting solid earnings potential for shareholders.
Despite experiencing volatility in recent months, analysts find SMFG’s stock appealing.
The shares, traded on the Tokyo Stock Exchange and as American Depositary Receipts in the U.S., have climbed 32% year-to-date and could rise to a target price of 13,600 Japanese yen (approximately $93.82), representing nearly 50% upside.
However, DBS maintains a more cautious target of 11,000 yen.
3) Contemporary Amperex Technology (CATL)
At the top of Goldman Sachs’s “Conviction List” is the Chinese company Contemporary Amperex Technology (CATL).
With the global surge in demand for batteries, CATL is considered one of the most promising investments in the sector, with Goldman forecasting a remarkable 64% growth potential.
The investment bank has set a 12-month price target of 307 Chinese yuan ($43.16).
Owing to its product differentiation strategy in battery technology, the company’s earnings per share are expected to grow by 25% between 2024 and 2030.
CATL’s shares, listed on the Shenzhen Stock Exchange and included in the Amplify Lithium & Battery Technology ETF (6.8% weighting) and KraneShares MSCI China Clean Technology Index ETF (6.6% weighting), have increased by 14.6% year-to-date.
Disclaimer
The information and views expressed in this article should not be considered as the sole or primary basis for making investment decisions.
Readers retain full freedom and responsibility for their investment choices, knowing their risk tolerance and time horizon.
This article is for informational purposes only and does not constitute an offer or solicitation for public savings.
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