Goldman Sachs has a bunch of new stock picks — here are 10 it says have serious upside

Published Sun, Nov 7 20217:30 PM ESTUpdated Sun, Nov 7 20219:43 PM EST

Goldman Sachs analysts started covering a raft of new stocks in October. Here are 10 of its buy-rated picks, which the investment banks says have an average upside of over 40%: Consumer One of the world's most recognizable athletic footwear and apparel brands, Nike is well-positioned for further growth in a changing retail industry, Goldman said on Oct. 12, as it initiated coverage of the company. It gave the stock a 12-month price target of $172 and an implied upside of 15%. "Our valuation points to more share price upside, especially after recent pull back on sourcing concerns, which we think are transitory and likely priced in," the analysts, led by Kate McShane, said. In the longer term, Nike is set to benefit from an increased focus on wellness and more casual fashion trends post-pandemic, the analysts added. Goldman's analysts also started covering South Korean cosmetics manufacturer Cosmax, giving it 32% potential upside to the bank's 12-month price target of 175,000 Korean won ($148.80). The analysts, led by Jiun Im, noted that Cosmax is already China's largest cosmetics original equipment and design manufacturer by sales. It should "continue its industry dominance via its proven business execution track record, unrivaled capacity size, well-diversified categories and strong [research and development] capability," the analysts added. Eyewear retailer Warby Parker is a "high-growth omnichannel brand with exposure to the structurally growing visioncare market," Goldman said in its initiation note on Oct. 24. The analysts like its strong brand and said its expanded store fleet, rising market share and potential for margin expansion should help to drive growth. Goldman gave the stock a price target of $72, implying an upside of 27%. Health The Wall Street firm commenced coverage on Hong Kong-listed medical devices company Broncus on Oct. 27, giving the company a 97% potential upside to its 12-month target price of 21.51 Hong Kong dollars ($2.80). Goldman said Broncus was a leading player in its segment, with the potential to "transform the treatment of lung diseases in China." Healthcare technology firm Cue Health is another of Goldman's picks in the sector. In its initiation note on Oct. 19, the bank said it sees long term opportunity in the growing "telehealth" market and believes that the company's push into the corporate and direct-to-consumer channels will be a positive catalyst for the stock. Goldman has ascribed a 12-month target price of $19 on the stock, implying a 78% potential upside. Payment technology Goldman likes NYSE-listed EngageSmart , a software enabled payments company, for its "compelling exposure to the growth in vertical specific software with integrated payments." The analysts, led by Will Nance, noted on Oct. 18 that an increased use of management software in the health and wellness sector, along with the wider adoption of paying bills online by enterprise businesses, will likely drive growth in the longer term. The stock has a 36% potential upside to its price target of $44, according to Goldman. Digital financial services provider Remitly is a "secular winner" that benefits from increasing digital adoption in the remittance space, Goldman said. It puts the company in a strong position to gain a larger market share in the fragmented sector, Nance and his team noted on Oct. 18. "We believe Remitly's sleek mobile platform and its brand geared towards helping immigrants and their families will continue to resonate in the marketplace, allowing Remitly to continue to expand into new corridors and take share from legacy remittance companies," the analysts added. The investment bank has a price target of $61 on the company, implying a potential upside of 52%. Technology stocks U.S. smart home management system provider SmartRent is a pick for Goldman, which started covering the stock on Oct. 26 with a 12-month price target of $18 and an implied upside of 50%. The investment bank likes the company's strong customer base, noting that SmartRent is the largest player in the smart home market for property owners. "We believe the market for providing a software platform for managing smart home hardware for multi-tenant building owners is nascent, with potential for secular long-term growth," the analysts said. Goldman also initiated coverage on TDCX , a business process outsourcing company headquartered in Singapore. The investment bank likes the company's "high exposure to fast-growing new-economy customers," its market opportunities in Southeast Asia and successful offshore model, the analysts, led by Pang Vittayaamnuaykoon, said on Oct. 26. Goldman has ascribed the stock a price target of $30.30 with an upside of 16%. Information services Goldman's analysts also started covering Sterling Check , one of the world's top three background check services providers, giving it a 45% potential upside to the price target of $37. "We believe Sterling Check's scale, global reach and technology platform enable accurate and rapid background screens and paves the way for market share gains and annual organic revenue growth of 9-11%," the analysts, led by George Tong, said in its initiation note on Oct. 17.

Goldman Sachs analysts started covering a raft of new stocks in October. Here are 10 of its buy-rated picks, which the investment banks says have an average upside of over 40%: