Goldman
Sachs
recently
added
a
number
of
stocks
to
its
lists
of
top
picks,
and
a
number
of
them
were
given
significant
upside.
Called
the
“Conviction
List
–
Directors’
Cut,”
the
lists
encompass
the
United
States,
Europe
and
Asia-Pacific.
Those
lists
are
the
bank’s
“curated
and
active”
picks
of
between
15
and
30
top
buy-rated
stocks
for
each
region.
The
names
are
selected
by
a
subcommittee
designated
by
the
bank’s
Investment
Review
Committee
for
each
region.
“The
subcommittee
will
collaborate
with
each
sector
analyst
to
identify
top
ideas
that
offer
a
combination
of
conviction,
a
differentiated
view
and
high
risk-adjusted
returns,”
Goldman
said.
Here
are
five
of
them
with
more
than
50%
upside,
with
all
price
targets
for
the
12
months
from
December
2023.
WW
International
U.S.-headquartered
weight
loss
services
company
WW
International
,
known
as
Weight
Watchers,
aims
to
capitalize
on
the
increased
demand
for
anti-obesity
medication,
Goldman
noted.
“WeightWatcher’s
subscriber
base
and
earnings
power
has
been
shrinking,
but
the
company
has
reembarked
on
an
aggressive
strategy
to
turn
things
around,”
the
bank
said.
“[Goldman]
believes
WW’s
new
obesity
drug
on-ramp
solution
could
be
the
catalyst
for
a
turnaround,
especially
when
combined
with
WeightWatchers’
trusted
brand
recognition
and
deep
existing
and
former
customer
base.”
Goldman
noted
that
42%
of
the
U.S.
population
is
obese
—
suggesting
that
the
insurance
authorization
for
weight
loss
drugs
is
likely
to
grow.
Capturing
as
little
as
3%
of
this
market
could
add
$2
to
WW’s
earnings
per
share,
said
the
bank.
Goldman
gave
the
stock
a
price
target
of
$18,
implying
potential
upside
of
105%.
First
Solar
The
U.S.
solar
panel
manufacturer
is
“ideally
positioned”
to
benefit
from
U.S.
Inflation
Reduction
Act
incentives,
said
Goldman.
“And
FSLR’s
track
record
of
being
a
key
supplier
to
utility
scale
solar
farms
should
provide
investors
with
confidence
that
it
can
execute
against
now-high
expectations,”
the
bank
said.
Goldman
believes
First
Solar’
s
core
gross
margins
are
set
to
have
upside
on
the
back
of
pricing
power
and
cost
reductions,
among
other
factors.
The
bank
gave
the
stock
a
price
target
of
$275,
or
potential
upside
of
59%.
Burberry
Goldman
believes
the
brand’s
trajectory
is
turning
more
positive,
supporting
its
prediction
for
gains
in
Burberry
‘s
market
share.
Compared
with
its
peers
in
the
luxury
sector,
Burberry
is
trading
at
an
estimated
price-to-earnings
multiple
of
14
times
this
year,
higher
than
the
group’s
19
times,
Goldman
estimated.
The
bank
gave
Burberry
a
price
target
of
2500
pence,
or
potential
upside
of
75%.
Stocks
in
the
U.K.
trade
in
pence.
As
for
other
European
stocks,
Goldman
also
picked
sportswear
brand
Puma
,
giving
it
a
price
target
of
85
euros
($93),
or
around
68%
upside.
Kuaishou
Technology
Hong
Kong-listed
Kuaishou
Technology
is
China’s
second-largest
short-form
video
provider,
and
Goldman
forecast
it
will
deliver
16%
year-on-year
revenue
growth
in
both
2024
and
2025.
The
bank
added
that
its
valuation
remains
“undemanding”
for
its
expected
earnings
growth
in
those
two
years.
It
gave
the
stock
a
price
target
of
88
Hong
Kong
dollars
($11.26),
implying
upside
of
70%.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
