Goldman Sachs names 5 buy-rated stocks — giving one more than 70% upside

Published Mon, Apr 10 20238:19 PM EDT

Goldman Sachs revisited some of its stock ratings in light of recent volatility , sticking to some of them — and upgrading others. Some of those stocks are on the conviction buy list of the Wall Street bank, which has raised some of their price targets, giving them big upside. Here are five of the stocks. Clean technology stocks Goldman gave Israeli solar energy services firm SolarEdge Technologies a price target of $420, or nearly 50% upside, in a March 29 note. It says it maintains a "tactically more bullish view" on SolarEdge, which is also on Goldman's conviction buy list. The bank says the firm can continue to outperform as its gross margin recovery is "still only in the middle innings with more drivers of upside yet to fully play out," citing the U.S. Inflation Reduction Act tax credits as one such driver. "The specter of potential upside and leverage to any further European policy support (e.g. IRA) would make SEDG well-positioned to see further upside in numbers, in our view," Goldman analysts wrote. The EU in January announced new green proposals to rival the U.S. Inflation Reduction Act. In the same note, the bank upgraded energy storage firm Fluence Energy from "neutral" to "buy," giving it a price target of $29 — or around 44% upside. It attributed its positive view on Fluence to "better visibility" on the company's "improving gross margin trajectory" and "high growth in the energy storage market." Mercedes-Benz Goldman gave the automaker a price target of 96 euros ($105), or around 42% upside, in an April 6 note. It says it expects Mercedes to continue to demonstrate best-in-class execution, and "believe that the company's technology capability is being overlooked by the market." Mercedes is also on Goldman's conviction buy list. Financial services and insurance stocks Goldman upgraded insurer Corebridge Financial's rating to buy, giving it a price target of $23, or potential upside of around 44%. The bank's analysts note that because the firm's valuation is depressed and lower than its peers' "despite a more benign liability profile," it expects "upside in the stock driven by pricing pressure that is not reflective of its asset and liability risk." On top of that, although there are pressures on Corebridge's stock price that are related to regional bank difficulties, it doesn't see them as a "material risk" to the company's net flows. The bank stuck to its buy rating for insurer Equitable Holdings , which is on its conviction buy list. It gave the stock a price target of $43, implying upside of 74%. One focus for the firm is its potential commercial mortgage loan exposure, particularly in the office segment, said Goldman. "Despite EQH's elevated exposure, we note that they manage our stress test quite well, having a comfortable enough excess capital position to absorb our corporate credit and [commercial real estate] focused stress even with the considerable [commercial mortgage loan] exposure," Goldman analysts said. — CNBC's Michael Bloom contributed to this report.