Home » Business » Goldman Sachs sees great opportunities for these stocks 5/27/20

Goldman Sachs sees great opportunities for these stocks 5/27/20

The Goldman Sachs experts are pessimistic about the further development of the stock market. But they have found three companies that they can do a lot in the current difficult situation.

• Goldman Sachs remains risk averse
• Analysts see three stocks with great upside potential

David Kostin currently sees numerous risks for equity investors. As “Yahoo Finance” reports, the top US equity strategist at Goldman Sachs believes that while all the good news and optimistic expectations have been priced in, prices have been downplayed by investors.

Against this background, the Goldman experts had taken a risk-averse attitude in search of stocks that could represent a buying opportunity despite the uncertain future prospects in connection with the Corona crisis. They came across three interesting companies.

Axalta Coating Systems share

The investment bank is therefore optimistic, among other things, for Axalta Coating Systems, one of the world’s largest manufacturers of automotive OEM coatings.

The Coronona crisis has also had a negative impact on production and sales at Axalta, and equities are still lagging behind the recent recovery rally in the broad US equity market. Nevertheless, Goldman analyst Robert Koort is optimistic that the Axalta share should also recover soon. As justification, he refers to China, where the economy is now starting up again in badly affected corona areas and therefore Axalta’s business with refinish coatings is already improving again.

Robert Koort is also optimistic for the US Axalta market and points to a good demand for refinish coatings by people who stay at home and to the restarting production of the automobile manufacturers after the temporary shutdown. In view of this, he increased his valuation of the Axalta share from originally “neutral” to “buy” and set a price target of $ 25.

ConocoPhillips share

The shares of the oil company ConocoPhillips are also recommended for purchase. Because even though sales slumped in the first quarter, analysts’ expectations on the earnings side were significantly exceeded. It should also be noted that the dividend had been raised in the final quarter of 2019 and this new, increased level was also maintained in the first quarter of 2020.

Neil Mehta also believes the group will benefit greatly from the upcoming oil price uptrend. The Goldman analyst therefore sees the current low price level of the ConocoPhillips share as a good buying opportunity. He gave the stock a “Buy” rating and set a target price of $ 51.

Canadian Natural stock

Goldman Sachs also has Canadian ones oiland gas exploration, development and production company Canadian Natural, which is active in Canada, the North Sea and off West Africa.

Analyst Neil Mehta cited two main reasons for his optimistic view of Canadian Natural: Firstly, Goldman Sachs is expected to see a recovery in the oil price, which should benefit the Canadian company, and secondly, he has enough liquidity to weather the current crisis. Although the group reported a loss in the first quarter and clearly failed to meet expectations, free cash flow of $ 4.6 billion was reported for 2019, thus creating a solid foundation.

It is also positive that Canadian Natural pursues a stable dividend policy and that its dividend is reliably distributed even in the difficult first quarter. Compared to the competition as well as with the S & P500 companies, his payments to the shareholders are relatively high.

Against this backdrop, Neil Mehta now sees the price target at $ 21 and has increased his rating to “Buy”.

Editorial office finanzen.at

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