Goldman Sachs maintains a global conviction list — the crème de la crème of its universe of buy-rated stock picks. CNBC spotlights just six stocks from that list which Goldman thinks will rally by more than 60% over the next 12 months. As at Nov. 26, the list comprises 179 names but just less than a fifth have upside of more than 60%. A relatively new addition is South Korean medical devices company Jeisys Medical. The firm is an "emerging [research & development] powerhouse poised to outgrow peers in the fast-growing non-invasive skin lifting market," analyst Kim Sangsoo said in his initiation note on the stock back on July 30. Following another "robust earnings set in 3Q21," the analyst expects the company to deliver three-year compounded revenue and earnings growth of 36% and 64% respectively, driven by broader geo-expansion, an innovative product portfolio and higher operating leverage for margin expansion. Kim believes that the company is a "secular growth stock," citing its resilient penetration in the U.S. and Japan, which collectively made up more than 70% of its revenue year-to-date. New product launches will lift the company's profile while a potential entry into China will allow the company to build more long-term growth opportunities, Kim said on Nov. 11. Goldman has a price target of 19,200 Korean won ($16.10) on the stock — an implied upside of 203% to the stock's closing price of 6,330 Korean won on Nov. 25. Boston-based biotechnology firm Vertex Pharmaceuticals had a "strong 3Q beat" as it delivered total cystic fibrosis franchise revenue that was above Goldman's expectations, the analysts, led by Salveen Richter said on Nov. 2. The company also noted the "potential for substantial growth into the mid-2030s." Salveen highlighted the emergence of "pipeline growth levers" such as cell therapy for type 1 diabetes, a non-opioid pain inhibitor and investments in gene editing to treat serious diseases, among others. Goldman raised its price target for the stock to $326 on Nov. 2 from $317 previously. This implies a potential upside of 74% to the stock's closing price of around $187 on Nov. 25. Pharmaceuticals firm WuXi Biologics is expected to "grow into a global leader" in biological medicine contract manufacturing, due to its proprietary technology and global expansion, Goldman analyst Chen Ziyi said on Aug. 8 when the company was added to Goldman's conviction list. In a research note on Nov. 2, Chen noted that the company expects profit growth of 40% from 2020 till 2025, as well as positive free cash flow in 2022 and beyond. Goldman has a price target of 178.60 Hong Kong dollars ($22.90) on the stock, which implies a potential upside of 72% to the stock's closing price of 104.10 Hong Kong dollars on Nov. 25. Hong Kong-listed shares of Alibaba have plunged more than 13% since the release of its disappointing earnings report for the quarter ended September, but this has not deterred Goldman as it reiterated its buy rating on the e-commerce giant on Nov.19 with an unchanged price target of 245 Hong Kong dollars. The price target represents a 81% potential upside to the stock's closing price of 135 Hong Kong dollars on Nov. 25. The company has also guided for 20-23% revenue growth for the financial year ended 2022, the analysts led by Piyush Mubayi said. Despite delays in the launch of two of its upcoming video games, videogame titian Activision Blizzard 's "earnings power remains intact, and we view any weakness [in the share price] as a buying opportunity," analyst Michael Ng said on Nov 3. The analyst added that the company should benefit from the launch of Call of Duty: Vanguard, the largest content update for Call of Duty: Warzone to-date, and the World of Warcraft modern expansion. Other positives cited by the analyst include the launch of Diablo Immortal, continued momentum for Hearthstone and the testing of new Warcraft mobile games. Goldman has ascribed a price target of $111 on the stock, or about 79% upside from its closing price of around $62 on Nov. 25. German chemicals maker Covestro is another Goldman stock pick with significant upside. In a note dated Oct. 27, the analysts, led by Georgina Fraser, described the company as a "well-invested, cost-leading and cash generating commodity asset with structural demand growth and highly consolidated supply-side dynamics." The analysts increased their estimate for the company's earnings before interest, taxes, depreciation, and amortization by around 2% and 8% for 2021 and 2022, respectively, in a note on Nov.16. The bank has a price target of 90 euros ($101.40) on the stock, which closed at 54.92 euros on Nov. 25 — an implied upside of 64%.
A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010.
Daniel Acker | Bloomberg | Getty Images
Goldman Sachs maintains a global conviction list — the crème de la crème of its universe of buy-rated stock picks. CNBC spotlights just six stocks from that list which Goldman thinks will rally by more than 60% over the next 12 months.
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