As we approach the New Year, market experts, including Goldman Sachs’ Chief US Equity Strategist David Kostin, anticipate a modestly positive investing environment for 2024. Kostin suggests that despite potential market volatility, there are opportunities for savvy investors to profit. Goldman Sachs analysts have identified three stocks with promising prospects for the coming year.
- Vale SA (VALE): Unlocking the Potential in Mining
- Description: Vale SA, a leading mining company based in Brazil, has consistently ranked among the world’s largest producers of iron ore and nickel. The company’s robust operations, particularly in the Carajas mine, position it for significant growth.
- Financial Highlights: In 3Q23, Vale reported a top line of $10.62 billion, showcasing a nearly 7% YoY increase. Despite some volatility, Goldman Sachs sees a unique investment thesis for Vale, emphasizing factors like balanced iron ore market support, positive operational momentum, and an attractive valuation.
- Analyst Perspective: Goldman Sachs analyst Marcio Farid gives Vale a Buy rating with a $19.50 price target, implying a 29% upside potential in the next 12 months.
- Installed Building Products (IBP): Insulating Success in Residential Construction
- Description: IBP, a major installer of building insulation products in the US construction industry, stands out in the residential new construction market. The company’s full-service approach and diverse product portfolio, including insulation and complementary products, position it for success.
- Financial Highlights: IBP reported $706.5 million in revenue for 3Q23, beating forecasts. Despite challenges in the real estate and construction markets, Goldman analyst Susan Maklari is optimistic about IBP’s prospects, anticipating an 8% YoY growth in single-family starts in 2024.
- Analyst Perspective: Maklari gives IBP a Buy rating with a $178 price target, suggesting a 22% share appreciation over the next year.
- Legend Biotech Corporation (LEGN): A Biopharma Gem in Cell Therapy
- Description: Legend Biotech, a clinical and early commercial stage biopharma, has gained prominence with its drug, carvykti, approved for treating multiple myeloma. Backed by Johnson & Johnson, Legend is making strides in the commercialization of this promising therapy.
- Financial Highlights: Legend reported $152 million in net trade sales for 3Q23, reflecting a 30% QoQ increase. With ongoing market launches and expanding market share, Legend is establishing itself as a major player in cell therapy.
- Analyst Perspective: Goldman analyst Ziyi Chen rates Legend as a Buy with a $90.09 price target, indicating a 50% upside potential in the next 12 months.
Goldman Sachs identifies these three stocks – Vale SA, Installed Building Products, and Legend Biotech Corporation – as promising opportunities for investors in the evolving landscape of 2024. Each stock presents unique strengths and growth potential, making them worth considering in the coming year.
