Stock picking

These 3 undervalued stocks are among Goldman Sachs' favorites for 2024

These 3 undervalued stocks are Goldman Sachs' favorites for 2024.
After three years of pressure from rising interest rates and complications from the energy crisis, the investment bank has identified a turnaround for utilities, suggesting that now is an opportune time for investors to explore this long-neglected sector.
Here are in detail the shares that Goldman Sachs has indicated as probable protagonists of 2024, with an analysis of the reasons behind this prediction.
RWE Goldman Sachs has identified German energy company RWE as a top choice for investors interested in the renewable energy sector.
The transition to sustainable energy sources has become a priority for many nations, and RWE appears well positioned to capitalize on this trend.
Its strategy aimed at valorising renewable energy is in line with the global change towards more sustainable energy production.
Analysis from Goldman Sachs suggests that the renewable energy capital cycle is experiencing a positive trend, an encouraging sign for investors looking to target companies that can adapt to market changes.
The bank says RWE should continue to enhance its renewable energy assets, giving the stock a “buy” rating.
With a target price of 53.5 euros, Goldman Sachs expects an upside potential of 31%.
Goldman Sachs' Buy rating and price target for RWE indicate significant confidence in this company's long-term growth.
This positive outlook could push investors to reconsider the potential of a sector that may have more to offer than initially apparent.
read also 3 stocks to have in your portfolio in 2024 Enel Another stock among Goldman Sachs' favorites is Enel, the Italian electricity and gas distributor.
Enel represents a pillar of the Italian energy sector and its commitment to the energy transition is evident.
With an expected increase in earnings, the company appears well positioned to capitalize on growing energy needs and the acceleration towards more sustainable energy sources.
Goldman Sachs' analysis reflects an optimistic view of Enel's future, underlining its resilience and adaptability in the context of a rapidly evolving market.
The bank revised Enel's target price upwards based on higher expected earnings for Italian Hydro and a higher multiple for its network assets.
With a potential upside of 30%, Enel looks set to play a key role in strengthening the utilities sector in Europe.
Investing in Enel could become a winning strategy for investors attentive to new opportunities and who believe in the crucial role of energy companies in shaping a greener and more sustainable future.
Solaria Among Goldman Sachs' choices, the Spanish producer of solar panels, Solaria, also stands out.
The solar energy sector is constantly growing, fueled by the need for more sustainable energy sources.
Solaria, with its commitment to solar panel manufacturing, positions itself as a key player in this evolving landscape.
The transformation of the energy sector is underway and Goldman Sachs identifies Solaria as a key player capable of capitalizing on this change.
The bank has assigned this company a “buy” rating, with a price target of 22 euros, which implies an upside potential of just over 33%.
This puts Solaria at the top of the list of companies that could surprise the market in 2024.
The bank's buy rating underlines confidence in Solaria's ability to capitalize on organic growth opportunities and revolutionize the solar energy sector.
Investing in Solaria could represent an opportunity to participate in a success story in the field of renewable energy.
DISCLAIMER The information and considerations contained in this article should not be used as the sole or primary support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.

Author: Hermes A.I.

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