Analysts at Goldman Sachs have upgraded a raft of global stocks to "buy" in recent weeks, with the Wall Street firm highlighting opportunities across pharmaceuticals, real estate, financial services and more. Goldman upgraded Hong Kong real estate developer CK Asset — a unit of Li Ka-shing's CK Hutchison — to buy on Nov. 23. The bank said the company delivered an "impressive" 21% year-on-year increase in dividend per share growth for the half year, while most of its peers kept their dividends largely flat. The Wall Street firm believes the company offers the most upside relative to its historical dividend yield, and expects the company to continue to outperform, analyst Gurpreet Singh Sahi said as he upgraded the company to buy. Goldman has a price target of 73.80 Hong Kong dollars ($9.50) on the stock, which implies an upside of 56% to its Dec. 17 closing price of around 47 Hong Kong dollars. Homebuilder Lennar was upgraded to buy by Goldman on Dec. 1. "Our view reflects Lennar's operating acumen, as it leverages efficiencies from land acquisition to the construction and sale of the home, supporting returns. As larger, entry-level focused communities are rolled out, and supply constraints ease, we look for double-digit y-o-y growth in revenues in 2022," analyst Susan Maklari said. The company has also announced a spin-off of some of its non-core assets, which could help boost the stock, Goldman said. The bank expects the company to add to its "strong balance sheet" with free cashflow of more than $3.7 billion in 2022. The company has also invested in various growth opportunities while returning cash to shareholders, Maklari said. She expects the company to post earnings per share — a popular metric used by traders to gauge the value of a stock — growth of 23% in 2022. Goldman has a price target of $140 on the stock, which closed at around $108 on Dec. 16 — an implied upside of 29%. U.S. sporting goods chain Academy Sports and Outdoors was upgraded to buy by Goldman last week, with the bank citing new customer stickiness, favorable population migration trends and a competitive edge from its established relationship with Nike . Improving omnichannel and digital capabilities and an attractive valuation could also help the company achieve gross margin expansion, analyst Kate McShane wrote on Dec. 14. Goldman has a price target of $58 on the stock, representing a 49% upside to the stock's closing price of $39 on Dec. 16. Capri — the owner of Michael Kors, Versace, and Jimmy Choo — was another consumer name that was upgraded to buy by Goldman. "Strengthening momentum at Versace and sustainable margin improvements at Michael Kors supports growth and valuation upside," analyst Brooke Roach said on Dec. 13 as she upgraded the luxury fashion group. Goldman has a price target of $86 on the stock, which closed at around $61 on Dec. 16 — an implied upside of 40% Goldman upgraded Alnylam Pharmaceuticals on Nov. 22, as it cited "multiple drivers for growth" for the company into 2022. Alnylam aims to be a top five biotechnology company by 2025, analyst Salveen Richter said. The bank highlighted Alnylam's successful product development strategy, with 60% of the company's assets progressing to phase 3 clinical trials compared to the industry average of 10%, Richter noted. Goldman has ascribed a price target of $273 on the stock. Shares in the company closed at around $185 on Dec. 16, implying a potential upside of 48%. Goldman sees Belgian specialty chemicals and food ingredients provider Azelis as a medium term "secular growth name" with potential to deliver double-digit compounded revenue growth. The company could also achieve strong EPS growth through organic growth and acquisitions, analyst Suhasini Varanasi said as she upgraded the stock to buy on Dec. 1. Goldman has a price target of 33 euros ($37) on the stock, which represents a 34% potential upside to the stock's closing price of around 25 euros on Dec. 16. Japanese automaker Hino Motors was also upgraded by Goldman last month, with the bank seeing strong truck demand in ASEAN markets and with the worst period of the company's North American operations now behind it, analyst Kota Yuzawa said as he upgraded the stock on Nov. 22. "We think it will be relatively easy for price hikes to gain acceptance, given back orders are also increasing at a competitor," Yuzawa said. "Having established alliances with Cummins and Isuzu Motors , North American operations could move toward normalization from the start of the new year," he added. Goldman has put a price target of 1,300 Japanese yen ($11.50) on the stock, a 35% upside to the stock's closing price of 961 Japanese yen on Dec. 17.
Analysts at Goldman Sachs have upgraded a raft of global stocks to "buy" in recent weeks, with the Wall Street firm highlighting opportunities across pharmaceuticals, real estate, financial services and more.