Goldman Sachs predicts more than 40% rally for these 3 stocks
There is a new wave of optimism on the street. Investment firm Goldman Sachs forecast just three months of its stock, raising it from neutral to overweight, with it forecasting “higher single-digital returns” for global stocks next year. What is behind this updated approach? Goldman Sachs strategist Christian Mueller-Glissman cites impressive rebound in global income growth and reducing equity costs as drivers of estimate revisions. On top of this, a “wide buyer shift” in stocks and other assets may occur during the remainder of this year. “We have moved more cyclically across sectors and disciplines, but still prefer growth versus value on a strategic horizon. In the near term, increased uncertainty in US elections and a better global growth outlook will drive non-US equity. May benefit more, but in the medium-term structural growth stocks are likely to support the S&P 500 of a larger weight, ”Muller-Gleesman. Noted For the “most important catalyst” that could fuel growth optimism over the next year, the strategist points to clarity on when and how a COVID-19 vaccine will be available. Given Muller-Glissman’s outlook in concrete recommendations, Goldman Sachs’ analysts have raised the table on three stocks that look particularly compelling. According to these analysts, each name is headed 12 months ahead. Raytheon Technologies (RTX) First of all we have Raytheon Technologies, an aerospace and defense company that provides advanced systems and services to commercial, military and government customers. While the shares declined in 2020, Goldman Sachs believes the weakness presents a buying opportunity. The firm, analyst Noah Popnak, says RTX is “well positioned to trade at high quality and 11% free cash flow of a company.” Fully aerospace-recovered and fully synergy of 2023E free cash. “The analyst’s rapid outlook is driven by the company’s aerospace aftermarket (driven by the secondary market that relates to the installation of equipment, spare parts, accessories and components after the sale of the aircraft) original equipment manufacturer) business, which Poponak argues” long-term. Is arguably the best sub-market within aerospace. “This segment makes up about 45% of RTX’s aerospace revenue. However, this portion of the COVID-19 flight disruption has weighed in, with the total aircraft in Poponak service only. 25% is down year-over-year, and flights are submerged by less than 50%. He said, “China’s domestic traffic is now increasing year-on-year, and the apathy remains internationally, we believe That global air travel recovery could be faster from here than broader expectations for recovery by 2023-2024. “Downturn, Aftermarket faced a headwind that stemmed from the increased use of parting outings, inventory pooling, and aftermarket Spending was delayed. “Nevertheless, the aftermarket grew faster or faster than ASMs, and we believe that this The key demand in the Di was that of support for tracking recovery in global air travel. In the long run, we expect air traffic to grow at 2X global GDP, as it has historically, “the analyst commented. According to the good news, the Gear Turbo Turbo Fan, a type of turbofan aircraft engine , The product cycle can generate substantial revenue. EBIT’s growth in Pratt & Whitney in Popatak’s opinion. “Given the high OE risk of the A320 ono, which has the strongest backlog of any aircraft on the market, we see That Pratt OE revenue is holding up better and recovering faster than peers. The new GTF delivery will serve as an expansion to the installed base for Pratt, the biggest decline in the 2000s. Despite the end of the V2500 OE delivery, the event is just growing into a sweet-spot for shop visits at the aftermarket, “Poponak protested. What’s more, Poponak’s synergy of the merger as capable of fuel expansion and cash generation Looks historically in. The synergy in space means that the upside to guidance is not out of the question. With his optimistic outlook, Poponak remains with the bull. To this end, he has a buy rating on the stock and Holds a $ 86 price target. Investors can profit 49%, should this goal be met in the next twelve months. (To see Poponak’s track record, click here) In general, other analysts Echoing the spirit of Poponak. 7 buys and 2 holds add to a strong buy consensus rating. With an average price target of $ 78.63, the upside potential comes in at 36.5%. (See RTX Stock Analysis at TipRank) Boeing (BA ) Heading for another player in the aerospace space, Boeing also struggled due to the COVID-19 epidemic It has also failed to compete with the pace of the broader market. It is being said that Goldman Sachs has high hopes for the name. Further analyst Noah Poponak, who also incorporates RTX, points out that BA has already halved production rates compared to COV crisis and peak plans before Max. Grounding. The slow anticipated air travel rebound may result in greater reductions, but the analyst argues that these will be much smaller than previously observed reductions. He said, “Historically, most buying opportunities in BA shares are correct, as it is suitable for production rate cuts.” According to Poponak, compared to the previous economic downturn, the peak of the trough is larger and faster in the current recession, although this is partly related to the grounding of the 737 MAX in 2019. “We believe this will lead to a less severe dislocation of the supply and demand balance, and deliveries will recover to 2018 levels by 2024, as global air travel recovers and airlines replace accelerated retirement, Poponak believes That is how the company believes the company can meet its new production rate plan. Growth weighs more than its replacement. “Since the onset of the epidemic, airlines have revealed higher aircraft retirement plans. Has done, and is braided for less development. “For an amendment given in an airline’s order book, this means a substantial mix shift from development within new delivery numbers to replacement. Therefore, the backlog will not necessarily lose all its development orders, ”said the analyst. Typically, the pace has slowed down, following a spike in cancellation of aircraft orders in March and April. Poponak noted, “Even with the cancellation of another 200-plus units this year, we estimate the 737 MAX to be about 6X years of production by the middle of the decade, as estimated by our revised production rate.” The analyst is also optimistic with Poponak forecasting that BA will see positive free cash flow in 2021. “We think the market is underestimating mid-cycle achievable aircraft unit cash margins in key events, removing temporary negative items in the future, and underestimating. Inventory degree to be in 2021 Likely, ”he said. If this was not enough, Max iteration could be a major catalyst. The company is working towards restructuring and returning to service, with Poponak expected to arrive before the end of the year. Considering all of the above, Poponak carries a Buy rating and a $ 225 price target. This goal reflects his belief in BA’s ability to climb 35% more next year. According to the rest of the analyst community, opinions are mixed. With 8 Buys, 8 Holds and 1 Sell in the last three months, word on the street that BA is a moderate buy. At $ 192.40, the average price target is 16% upside potential. (See Boeing stock analysis on TipRanks) Ematics (IMTX) Combining the search for the right targets for cancer immunotherapy (those that harness the power of the immune system of the medical system) with the development of the right T cell receptors, ematics will eventually lead to a stronger and competent Expects to have specific T cell responses against these targets. Based on his cutting-edge approach, Goldman Sachs counts himself as a fan. For the firm, analyst Greg Suwanvez, notes that unlike the CAR-T approach, a T cell receptor (TCR) -based approach can go after the target inside the cell. And 90% fight cancer which are solid tumors in nature. The company is advancing two technologies: Actengine, which is designed for personalized TCR-based cell therapy, and TCER, which targets TCR-based bispective antibodies. ACTengine is the more advanced technology, with four properties of IMA201 Also, a genetically engineered T cell product is the candidate. Melanoma-associated antigen 4 or 8 targets IMA202, which targets melanoma-associated antigen 1, IMA203, which is preferentially expressed in melanoma (PRAME) and IMA204, the target col6A3 (found in the stroma of a tumor And is highly prevalent in tumor microenervation) / TME in a wide range of cancers) hopes to enter the clinic soon. Using the TCER platform, IMTX is developing IMA401 and IMA402, or a part of the “off-the-shelf” biology TCR, which directly recognizes cancer cells, a T cell recruiter domain that recruits and engages the patient’s. Activates T cells. Pointing to the market opportunity, Suwanvez noted, “Cancer immunotherapies have made a lot of progress on T. In the last decade, and in particular, advances seen with CAR-T have led to cell therapy-based approaches. Car-T has, to date, only shown limited effects in the treatment of cancers which are solid tumors in nature. With more than 90% of all cancers being solid tumors – with lung, breast, colorectal and prostate cancer accounting for a total of c.60% – this is the opportunity for IMTX. “To date, he believes that cumulative 2035 sales may be on the ground for $ 15.5 billion for actengine-based assets. Considering another positive thing, since 2017, IMTX has posted a low per year At least one significant partnership is with global biopharma companies. According to Suvannavejh, each provided non-dilutive funding opportunities. The analyst stated, “… ARYA Science Acquisition Corporation, a special purpose acquisition company (SPAC ), A merger that enables IMTX to become a publicly rooted entity for well-known, experienced health-dedicated institutional investors. Taken together, we validate the long-term prospects of IMTX. ”Looking ahead, preliminary clinical data readouts for IMA201, IMA202 and IMA203, slated for Q1 2021, and investigational drug (IND) application submissions for IMA204. And IMA401 in 2021 and YE2021, respectively, reflect the major potential catalysts in Suvannavejh’s opinion. On the point that IMTX has persuaded Suvannavejh going for it to repeat its $ rating. With the call, they attached a $ 17 price target, suggesting 73% upside potential. (To see Suwanvez’s track record, click here) Are there other analysts in the agreement? They are Buy-only ratings, 4, in fact, have been issued in the last three months. Therefore, the message is clear: IMTX is a strong buy. Given an average price target of $ 19, shares could climb 93% over the next year. (See Ematics Stock Analysis at TipRanks) To find good ideas for stock trading at attractive valuations, buy TipRank’s Best Stocks, a newly launched tool that unites all of TipRanks’ equity equities. Disclaimer: The opinions expressed in this article are solely those of select analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.