Goldman Sachs updated its list of the world’s best stock picks for June, adding some stocks and deleting some. The stocks are included in the investment bank’s “Conviction Buy List – Director’s Picks,” which is designed to provide investors with a “carefully curated and active” list of 15 to 25 Buy-rated stocks. The stocks are selected by a panel designated for each region by the bank’s investment review committee. Goldman Sachs said: “The subcommittee will work with analysts across industries to identify the best ideas that combine conviction, differentiated views and high risk-adjusted returns.” Here are the latest three additions to Goldman Sachs’ director selection list – Asia Pacific and Europe – has over 40% upside potential over the next 12 months. Goldman Sachs is optimistic about Taiwanese electronic components manufacturer Elite Material, calling it an “undervalued artificial intelligence player with solid market share” in the field of artificial intelligence PCs, servers and smartphones. “EMC is the technology leader in high-end/high-speed CCL (copper foil laminate) (used in the most advanced IT equipment such as servers/AI servers/switches),” with a global market share of more than 40%, even the investment bank analyzed Shi Wangchao pointed out in an Asia Select research report on June 2 that although its product pricing is about 20% higher than peers. Elite Material’s shares trade on the Taiwan Stock Exchange and the SmartETFs Asia Pacific Dividend Builder ETF (weighting 2.9%). Goldman Sachs has a price target of NT$685 (US$21.16) on the stock, implying a potential upside of 54.1%. Goldman Sachs is also bullish on oil refining company Thai Petroleum due to its “strong cash flow generation,” “falling capital expenditure intensity and stronger profitability.” Nikhil Bhandari, an analyst at the bank, emphasized that the company’s clean fuel project for the production of sustainable fuels will increase production capacity by 45% and increase EBITDA (earnings on interest, taxes, depreciation, and amortization per barrel) profits by 40%. This will ultimately translate into an EBITDA CAGR (compound annual growth rate) of 37% from 2024 to 2026, he added. Thai Petroleum is a subsidiary of Thailand’s state-owned PTT Public Company, listed on the Stock Exchange of Thailand and traded on Nasdaq as American Depositary Receipts (ADRs). Goldman Sachs has a price target of 75 baht ($2.04) for the stock, implying a potential upside of 43.5%. Dutch lighting company Signify is also listed as a Goldman Sachs director. The investment bank has a price target of 38 euros ($40.80) on the stock, representing upside potential of about 63.2%. Signify was formerly known as Phillips Lighting and was a spin-off from the Philips lighting division. Analyst Daniela Costa noted in a June 3 research note on the bank’s European Selects that one of Signify’s strengths is that “margins are emerging at a time when end-market destocking is bottoming out.” Special acceleration”. She added that the company would also be a “major beneficiary” of changes in Europe’s construction industry, as the sector is Signify’s “largest end market” with a contribution of about 76%. Signify’s shares are listed on Euronext Amsterdam and as American Depositary Receipts (ADRs) on Nasdaq. —CNBC’s Michael Bloom contributed to this report.
