Goldman Sachs added a slew of new stocks to its coverage in November. The bank issued buy ratings on 42 of the companies — and says five have a potential upside of more than 100%. These five stocks are: U.S. medical device company Sonendo U.S. background screening company HireRight U.S. health intelligence company Sema4 South Korean used car retailer K Car U.K. telecom infrastructure company IHS Holding Sonendo The Wall Street firm started covering U.S. medical device company Sonendo on Nov. 23 — weeks after the company was listed on Oct. 29. Goldman analysts see a "significant opportunity" for the company to increase the use of its root canal treatment system (called GentleWave) and said its international strategy could create longer-term upside for the stock. "We believe that strong initial execution could drive multiple expansion and increase confidence in the company's significant growth and margin ramp," the analysts, led by Nathan Rich, said in their initiation note on Nov. 23. The bank has a 12-month price target of $30 on the stock— an implied upside of 240% on the stock's closing price of $8.82 on Dec. 2. K Car Goldman likes South Korean used car retailer K Car as a "beneficiary of the structural used car online transition" in the country. The company is the biggest online player in South Korea with 81% market share at the end of last year, analyst Eric Cha said on Nov. 23 as he initiated coverage of the company. Cha forecasts revenue and gross profit growth of 15% and 17%, respectively, into 2030. The bank has ascribed a price target of 85,200 Korean won ($72.10) on the stock, which represents a potential upside of 156% to the stock's closing price of 33,350 Korean won on Dec. 2. IHS Holding U.K.- based telecom infrastructure company IHS Holding , which has radio towers across Latin America, the Middle East and Sub Saharan Africa, is "well positioned to benefit from secular tailwinds in emerging markets, such as rapid population and GDP growth, as well as increasing 4G and smartphone penetration," analyst Brett Feldman said in his initiation note on Nov. 8. The company's "significant cash flow and balance sheet capacity" also positions it well for the acquisitions of additional towers, Feldman added. He noted that the stock offers a "compelling risk-return profile" for investors, especially following recent underperformance. Goldman has a price target of $29 on the stock — an implied upside of 116% to the stock's closing price of $13.43 on Dec. 2. HireRight Goldman's analysts also started covering HireRight , a leading provider of background screening services. "We believe [HireRight] is favorably leveraged to a cyclical recovery in employment markets, cross-selling among existing clients, international growth and secular tailwinds in background screening, including the rising velocity of voluntary employee turnover," analyst George Tong said as he initiated coverage of the company on Nov. 22. Tong sees "attractive organic revenue growth" of 7% for the company into 2023 and believes it will be able to improve margins as its automation initiatives continue to advance. The bank's price target of $35 represents a 110% potential upside to the stock's closing price of $16.69 on Dec. 2. Sema4 U.S. health intelligence company Sema4 is another of Goldman's newly-initiated stocks. Goldman likes the "highly recurring" revenue from its women's health screening business, which it expects to grow at 16% through 2023, analyst Matthew Sykes said as he initiated coverage on the stock on Nov. 19. The company has also begun pushing into the largely untapped and fast-growing somatic testing market, he said. Somatic testing is generally carried out after a cancer diagnosis to tests for gene mutations within cancer cells — and Sykes said it's an opportunity estimated to be worth "billions in the medium-term [and] expanding at an average growth rate we expect to be mid-teens to 20% annually." Goldman has a price target of $12 on the stock, which closed at $5.86 on Dec. 2 — an implied upside of 105%.
A Goldman Sachs sign at at NYSE.
Brendan McDermid | Reuters
Goldman Sachs added a slew of new stocks to its coverage in November. The bank issued buy ratings on 42 of the companies — and says five have a potential upside of more than 100%.