After a stellar 2021, Goldman says these 6 stocks are set to rise over 40% this year

Published Sun, Jan 9 20226:44 PM EST

A look at Goldman Sachs ' global conviction list — its favorite buy-rated companies — reveals 6 stocks with serious potential upside this year, despite them already rallying more than 60% in 2021. Taiwanese chipmaker NYPCB, or Nan Ya Printed Circuit Board , was the standout performer on Goldman's conviction list in 2021, with the stock up 221% over the year. But Goldman's analyst James Wang thinks the stock has more room to rise. Wang has a price target of 1,050 Taiwanese dollars ($37.90) on the stock, representing a 101% upside to its closing price of 573 Taiwanese dollars on Jan. 6. "We maintain our upbeat view on NYPCB, and we find several recent incremental changes suggesting a promising outlook for the company," Wang said on Nov. 11. The bank said the company's planned capacity expansion bodes well for earnings momentum. It could also benefit from potentially higher demand from AMD (Advanced Micro Device) and Nvidia for the company's Ajinomoto build-up film (ABF) substrates, Wang added. Shares in U.S. energy firm Cheniere Energy rose 69% in 2021, as the broader oil and gas sector made a strong recovery. The company — the nation's largest exporter of natural gas — is Goldman's "top pick" in the energy midstream sector given its strong free cash flow and incremental growth in forecast earnings, analyst Michael Lapides said on Dec. 20. The company is also expected to raise its dividend payouts by 6% through 2027, while paring down debt. Goldman has a price target of $157 on the energy firm, representing a 43% upside to its closing price of around $110 on Jan. 6. Valvoline , a U.S.-based manufacturer and distributor of oil products, soared 61% in 2021, but analyst Jason English believes the stock still has further to run. The analyst wrote on Nov. 16 that the company's global products and retail services segments are achieving "substantial market share gains" which should reap "enduring benefits." In particular, the company is the world's top supplier of battery fluids to electric vehicle manufacturers, English highlighted. The bank has a price target of $53 on the stock, which closed at around $36 on Jan. 6 — an implied upside of 45%. Italian bank UniCredit also had a strong performance in 2021, as it gained more than 77% in 2021. Goldman's analyst Jean-Francois Neuez noted that the company has committed to pay out at least 16 billion euros ($18.1 billion) in organically generated capital until 2024 — the highest capital return in Goldman's coverage. The analysts have a price target of 20 euros on the stocks, representing a potential upside of 41% to its Jan. 6 closing price of around 14 euros. State Bank of India — India's largest public sector bank — also made the list, as its stock price surged 68% in 2021. Analyst Rahul Jain highlighted the bank's "positive commentary" on growth in a Nov. 29 note, also highlighting the bank's "positive tone" on asset quality and "healthy collection activity." Goldman has ascribed a price target of 820 Indian rupees ($11) on the stock, which closed at around 492 Indian rupees on Jan. 6, implying a potential upside of 67%. Shares in Chinese semiconductor firm SG Micro gained 76% in 2021, in line with overall positive sentiment around the global chip sector. The bank said the company's product lines are in tight supply amid strong demand across all applications, with strong order book visibility. The company has also diversified its product lines and continues its expansion into higher-end products, analyst Lynn Luo said on Nov. 8. She expects the company to continue delivering high earnings growth into 2027. The bank has a price target of 465 Chinese yuan on the stock, which closed at 287 Chinese yuan on Jan. 6 — an implied upside of 62%.

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A look at Goldman Sachs' global conviction list — its favorite buy-rated companies — reveals 6 stocks with serious potential upside this year, despite them already rallying more than 60% in 2021.