Goldman Sachs updated its list of the world’s best stock picks for July, adding some stocks and deleting some. The stocks appear on the investment bank’s “Conviction List – Director’s Picks,” which aims to provide investors with a “curated and active” list of 15 to 25 Buy-rated stocks. Stocks on the list are selected by subcommittees appointed for each region by the Bank’s Investment Review Committee. “The subcommittee will work with analysts across industries to identify the best ideas that combine conviction, differentiated views and high risk-adjusted returns,” Goldman Sachs said. Here are two of the latest additions to Goldman’s director list – Asia Pacific and Europe. Tencent Holdings Chinese tech giant Tencent has entered Goldman Sachs’ list, with the bank saying it “provides one of the most visible and sustainable 20%-plus profit growth models in China’s internet industry”. The investment bank analyst Ronald Keung wrote in a July 1 Asia research note that the company has gaming revenue growth from new games and ad market share gains following “multi-year ad technology upgrades” “unique combination”. He believes other strengths of the company include “a committed and consistent shareholder return policy in the form of buybacks and dividends – with annual share buybacks worth at least HK$100 billion ($12.8 billion) in 2024 (yield approximately 3%) ”. Jiang added that these factors “should support the stock.” Tencent, which is listed on the Hong Kong stock exchange and in the U.S. as American depositary receipts, has seen the tech giant’s shares weather a rocky past few months. , has been rising. They are up nearly 24% year to date and 10% over the past 12 months. Goldman Sachs set a 12-month target price for the stock at HK$477, implying a potential upside of nearly 30%. ISS Goldman Sachs likes Danish facilities management company ISS because of its improving fundamentals and “earnings coverage, (free cash flow) beats and strong shareholder returns.” The investment bank analyst Ben Andrews expects the company’s organic growth and profits The rate will exceed consensus expectations. This will help “ensure ISS’s turnaround,” he was quoted as saying in the bank’s July 1 research note on European Select. He also expects ISS to announce incremental buybacks, which would be a “potential positive catalyst.” The Danish company’s shares are listed on the Copenhagen Stock Exchange and in the United States as American depositary receipts. Its shares have been on a downward trend, down 8.3% year to date and nearly 18% over the past 12 months. Goldman Sachs has a price target of DKK 160 ($23) on the stock, representing upside potential of about 35.7%. —CNBC’s Michael Bloom contributed to this report.
