Goldman Sachs has highlighted a range of stocks worth snapping up as December approaches. The company sees strong prospects in AT&T, GE Aerospace, Pinterest and Monster Beverage. CNBC combed through Goldman Sachs’ research to find buy-rated companies the firm believes are must-holds through the end of the year. GE Aviation’s shares have risen 5% in the past three months, but Goldman Sachs said the stock has significant upside potential after the company reported a solid profit in October. In fact, GE Aerospace raised its full-year guidance for adjusted earnings per share and free cash flow. Analyst Noah Poponak urged clients to take advantage of any downside opportunities in the stock, which he called a “quality compound stock.” “Its long-term profitability is strong,” he said, adding that “the fundamentals of the aerospace aftermarket are good.” Additionally, cash flow remains strong, operating results are “reliable” and management continues to execute. Finally, Poponack said demand for GE’s so-called “Leadership Aerospace Propulsion” (LEAP) engines also remains strong. He added that “the fundamental picture remains compelling” for the future. Monster Beverage analyst Bonnie Herzog urged investors to remain calm after a disappointing earnings report earlier this month. “We believe MNST is one of the most compelling growth stories for Staples more broadly,” she wrote. Herzog acknowledged that revenue growth fell short, but analysts said she believed there was enough room for profit margins to rise, giving her confidence in her thesis. “While we are optimistic about revenue growth opportunities next year, we expect management to equally emphasize continued gross margin expansion – which remains a key factor for investors to consider,” she said. Herzog has a price target of 1 per share $61, and he praised the company’s innovation and pricing capabilities. “Despite the weak results in the third quarter, we are optimistic that green shoots are emerging and we see an attractive picture for the fourth quarter and fiscal ’25,” Herzog said. Monster shares will be at $100,000 by 2024 down 6%. The social media company reported “generally solid results” earlier this month, with third-quarter revenue and profit beating expectations. Pinterest did, however, issue weak guidance for the quarter. Sheridan said investors should be most pleased that Pinterest “has demonstrated continued progress on the multi-year revenue growth and margin trajectory outlined at its September 2023 investor day.” Additionally, the company believes revenue will rise as user engagement remains strong. “While the short-term debate may still focus on PINS’ absolute revenue growth rate, we believe the long-term narrative for PINS remains focused on management’s actions,” Sheridan wrote. The analyst also said the stock is “our One of the most striking risk/reward biases in research.” Pinterest will drop nearly 19% by 2024. continued progress. …Based on after-hours pricing, we find PINS stock to be one of the most compelling risk/reward biases in our coverage. GE Aviation & Aerospace “Buy pullback as fundamental picture remains compelling…. LEAP’s market position remains exceptionally strong. Aerospace aftermarket fundamentals are sound. Management and operating results remain solid. Far away Cash flow has grown significantly over the period. We maintain a Buy rating on Monster Monster. “Despite the weak Q3 results, we are optimistic that green shoots are emerging and we see things coming in Q4 and FY25.” Very attractive. …While we are optimistic about revenue growth opportunities next year, we expect management to equally emphasize continued gross margin expansion – which remains a key factor for investors to consider… We believe MNST is Staples One of the most attractive growth stories: AT&T “We’re bullish on T given the factors we’re seeing, the upside in Wall Street forecasts and the stock’s price-to-earnings ratio justify double-digit annualized returns. Figures. …The wireless industry is becoming healthier, &T is performing well: Our analysis shows that the U.S. wireless industry has shifted to a more benign environment with less competitive intensity and capital intensity, and we believe this trend is sustainable Ongoing. Read more about this call here.
Goldman Sachs Likes These Stocks Going into December | Real Time Headlines
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