Goldman Sachs picks new stocks to buy from tech to health — some with over 100% upside

Published Sun, Aug 1 202111:19 PM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Goldman Sachs has added a slew of new stocks to its coverage, ranging from tech companies to health care firms and media businesses. Of the more than 70 stocks it started researching in July, it is buy-rated on about 45 — and some have a potential upside of over 100%. Goldman's analysts initiated coverage on newly-listed companies that debuted on the stock market in the past few months, and also started providing research on some big-name apparel and media brands. Here's a selection. Health care U.S. insurance firm Bright Health Group , which operates insurance tech software as well as a platform connecting patients with health providers is buy-rated by the bank and raised nearly $1 billion in an initial public offering (IPO) in May. Goldman said it sees more than 100% upside to the share price from its current levels over 12 months, while trading at a "healthy" discount to other rapidly-growing insurers, according to a July 19 research note. Goldman also likes Ambrx Biopharma , a cancer biotech firm, for its "pioneering research", "unique and differentiated platform technology" and partnerships with pharmaceuticals companies such as Bristol Myers Squibb . The bank's 12-month price target is $53, representing a 148.8% potential upside, the analysts said in a July 13 research note. Health tech company Convey Holding , which counts the likes of U.S. government insurance plan Medicare as a customer, is a buy for the bank. "We believe Convey differentiates itself from competitors as a provider of purpose-built healthcare IT software and services to government-sponsored health plans," Goldman's analysts wrote in a July 11 research note. The bank's 12-month price target is $21, representing a potential 112.6% upside. Lyell Immunopharma , which develops cancer therapies, is also buy-rated by the analysts. "We are encouraged by the preclinical data seen to-date and the experienced management team and note multiple programs are set to enter the clinic with first-in-human data next year," Goldman's analysts said in a July 12 research note. The bank's 12-month price target is $30, representing a potential upside of 88.9%. Other new healthcare stocks Goldman picked include Chinese biotech firm CARsgen , with a 12-month price target of 48.72 Hong Kong dollars ($6.25) — a potential upside of 62.7% — and Chinese firm AmoyDx, with a 12-month price target of 140 yuan renminbi ($21.52), a potential upside of 66.7%. Technology Digital support company TaskUs is buy-rated, with Goldman giving it a 12-month price target of $61, a potential upside of 88.3%. The firm helps manage customer service for the likes of Zoom , which hired the company as the coronavirus pandemic struck in 2020. "We believe there is potential, given its historically high net retention rate, for it to grow above the consensus growth rates of its clients," the bank's analysts wrote in a July 6 note. Goldman gave IronSource , a "fast growing mobile ad platform at scaled margins," a 12-month price target of $11, a potential upside of 23.7%. The company went public in March via a special-purpose acquisition vehicle (SPAC) and the bank said it would benefit from growth in mobile apps and also liked its game development arm Sonic Publishing. SentinelOne , which debuted on the New York Stock Exchange in June and was the highest-valued cybersecurity IPO ever , is also buy-rated by the bank. Goldman described it as "a best of breed, founder-led XDR [extended detection and response] leader in one of the most attractive segments within Security Software," in a July 25 research note. The bank gave the stock a 12-month price target of $57, a potential upside of 22.4%. Goldman also picked "leading" Chinese firm JD Logistics — which became a separate entity to retail giant JD.com in 2017 — and listed on the Hong Kong stock exchange in May . Goldman expects it to double its market share by 2025, growing via investments in supply chain technology, overseas expansion and additions to its air cargo network. The bank's 12-month price target is 58.50 Hong Kong dollars, representing a potential upside of 38.3%. Goldman also likes Nasdaq-listed Turkish e-commerce giant Hepsiburada , with a 12-month price target of $25.90 — a potential upside of 95% — and Chinese electronics seller AiHuiShou , with a 12-month price target of $20.80, representing a potential upside of 48.1%. Apparel Goldman started covering several apparel stocks this month and said the sector has "macro tailwinds from a strong consumer and supportive discretionary retail spend," in a July 14 note to investors. Athleisure company Lululemon is on Goldman's conviction list, with the bank describing it as "a leader in driving online to offline consumer connection," giving it a buy rating. The analysts liked its $500 million acquisition of fitness screen company Mirror , and gave the stock a $447 12-month target price, a potential upside of 21%. Luxury label Ralph Lauren has "potential upside" from digital sales via its own websites, according to Goldman, which is "upbeat" about the company's turnaround, and it gave it a buy rating. The bank's 12-month price target is $147, a potential upside of 28%. Goldman is also buy-rated on Calvin Klein owner PVH , due to the company's e-commerce focus, new management and pandemic restructuring, expecting the firm to provide "stronger" margins. The bank gave the stock a 12-month price target of $127, a potential upside of 21%. Levi Strauss is a buy for the bank, which liked its "best-in-class heritage positioning." "LEVI is emerging from the pandemic with a better-positioned US wholesale marketplace, a more agile organization with increased digital tools and a faster go-to-market," Goldman said. Its 12-month price target is $36, a potential upside of 25%. Media Goldman started covering concert promoter Live Nation on July 15. "We initiate coverage on Live Nation ("LYV") with a Buy rating and 12-month price target of $110, implying 35% total potential return," the bank said. Goldman expects an uptick in live events after the pandemic and sees growth opportunities in high-margin merchandise and VIP experiences. The bank also likes audio firm iHeartMedia , calling it a "most undiscovered" stock, and "the leading multi-platform audio media company in the U.S." "We initiate coverage on iHeartMedia ("IHRT") with a Buy rating and a 12-month price target of $32, representing 25% total potential return," the analysts said in a July 15 research note. — CNBC's Riley de Leon contributed to this report.

Rafael Henrique | SOPA Images | LightRocket | Getty Images