Goldman Sachs has a bunch of new stock picks, including Grab, Universal Music and more

Published Sun, Feb 20 20226:32 PM EST

Goldman Sachs analysts have initiated coverage on 95 stocks since Jan. 1 — and given 51 of these a "buy" rating. These stocks span a range of industries, including airlines, healthcare, pharmaceuticals and tech. Here are seven of the buy-rated companies: The bank commenced coverage on telehealth specialist Teladoc Health on Feb. 11 as it described the company as a "global leader" in virtual healthcare. "With [the company] now trading near 52-week lows, we think the market's reaction is overdone. As the company rolls out its Primary 360 product, leverages its potential in the mental health arena, and eventually expands internationally, we believe [the company] represents an excellent way to invest in the future digital integration and disruption in the overall healthcare sector," Goldman's analyst Cindy Motz said on Feb. 11. Goldman believes the stock has "significant upside," ascribing a price target of $121 on the stock, representing a 71.7% potential upside to its closing price of around $70.50 on Feb. 17. Goldman also initiated coverage on two airlines, including the Hong Kong-listed shares of China Eastern Airlines on Feb. 9. It expects the airline to be a "top beneficiary" of price hikes and a full reopening of international routes. Goldman has a price target of 5.3 Hong Kong dollars ($0.70) on the stock, implying a potential upside of 57.7% to its closing price of around 3.4 Hong Kong dollars on Feb. 17. The bank also likes Australia's Qantas Airways for its "relatively comfortable" liquidity position and earnings potential, post-pandemic. "In our view, the current share price does not even reflect a generic recovery, let alone significant further upside associated with increased earnings capacity vs pre-Covid," Goldman's analysts, led by Niraj Shah, said in an initiation note on Feb. 1. The bank believes the airline's capacity will return to pre-Covid levels in 2024, with a corresponding profit growth of 45%. Goldman sees a potential upside of 18.7% for the stock, with a price target of 6.4 Australian dollars ($4.60). Universal Music — the world's largest music entertainment company — was initiated by the bank with a price target of 30.7 euros ($34.80), representing a 50.8% potential upside to its closing price of around 20.4 euros on Feb. 17. Goldman said the company is well positioned to capture the growth of music streaming and has significant monetization opportunities on the back of new technologies and its relationships with consumers. The bank believes Universal Music will be able to sustain rapid and predictable top-line growth and significant margin expansion, analyst Lisa Yang said as she commenced coverage of the stock on Jan. 20. Goldman also likes technology giant Grab , which the bank sees as a beneficiary of the growing Southeast Asia internet economy. The company operates in an "under-banked" market valued at $160 billion, according to Goldman. Analyst Pang Vittayaamnuaykoon said the company has a proven track record as a "super app" with a visible path to profitability. The bank has a price target of $7.90 on the stock, implying a potential upside of 36% to the closing price of around $5.80. French insurer AXA is another Goldman favorite. The bank said the company has "strong fundamentals" and is well positioned to capitalize on favorable structural tailwinds. Analyst Alan Devlin has forecast a solid earnings outlook for AXA and expects the company to benefit from inflation and rising interest rates. Goldman has a price target of 33.99 euros on the stock, which closed at around 27 euros on Feb. 17 — an implied upside of 25%. German reinsurer Munich Re was initiated by Goldman on Feb. 9. The bank sees the company as the largest and best capitalized of the European reinsurers and says it is well placed to benefit from increasing reinsurance demand driven by climate change. Goldman has a price target of 325 euros on the stock, which represents a potential upside of 23.3% to its closing price of 263.5 euros on Feb. 17.

Goldman Sachs logo displayed on a smartphone.

Omar Marques | SOPA Images | LightRocket via Getty Images