Goldman Sachs “Super Stocks” for 2022

Percent price potential and more: Goldman Sachs “super stocks” for 2022
Goldman Sachs is known for buying recommendations with often high price targets. But the US Investmenbank also knows a “creme de la creme” when it comes to selecting stocks: companies with very high profit margins.

The metric that Goldman Sachs analysts are looking at is gross margin. This compares the turnover with the costs for the goods sold in an accounting period. In times of high inflation, the gross margin can provide an indication of a company’s pricing power.

Goldman Sachs often sets high price targets and is known as “bullish” when it comes to buy recommendations. In a study reported by the US broadcaster CNBC, the bank is particularly convinced of four stocks. They show a gross margin of at least 50 percent, and the bank attests that their share price has at least 70 percent upside potential.

1) Taiwan Semiconductor (TSMC)
The own outlook for the gross margin of the Taiwanese chip manufacturer is “50 percent and higher”. According to Goldman Sachs, this could even be surpassed. TSMC is a contract manufacturer for chips from important tech companies such as Apple, Nvidia, AMD or Broadcom and expects more profitability due to price increases in the new year. After a very good 2020, the share price was volatile all in all in the year that is drawing to a close, increasing by only 12 percent. Goldman Sachs sets the price target at 1028 Taiwan dollars (TWD), which means an increase of 70 percent compared to the last exchange rate of 606 TWD.

2) Activision Blizzard
For Goldman Sachs, the large video game provider is still able to generate high profitability. The company owns the rights to well-known video games such as “World of Warcraft” or “Call of Duty” and will continue to develop these hits and bring new games onto the market. Unlike in 2019 and 2020, the price has fallen significantly this year, among other things because the “stay-at-home” factor was less effective and because allegations of harassment have shaken the company. However, Goldman Sachs sees 75 percent forecast gross margin for 2022, an upside of 70 percent with a target price of 111 dollars. The stock is currently trading at $ 65.

3) Jeisys Medical
According to Goldman Sachs, the market underestimates the potential of the South Korean medtech company. This manufactures devices for cosmetic surgery and the cosmetic industry. These should enable the company to continue its high growth. In 2021 the price rose by 84 percent. Goldman Sachs expects a gross margin of 70 percent and a price that can rise to 19,200 won. Before Christmas, the share went out of trading for 7770 won, resulting in an “upside” of 147 percent.

 

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Percent price potential and more: Goldman Sachs “super stocks” for 2022

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