Goldman Sachs: 4 'buy' rated stocks for the rest of 2022 with up to 101% upside

·3 min read
Goldman Sachs: 4 'buy' rated stocks for the rest of 2022 with up to 101% upside
Goldman Sachs: 4 'buy' rated stocks for the rest of 2022 with up to 101% upside

Year to date, the Dow, the S&P 500 and Nasdaq are all deep in correction territory.

But Goldman Sachs still sees plenty of opportunities. In fact, the Wall Street firm has issued 'buy' ratings on multiple companies this year, projecting meaningful upside ahead.

So here’s a look at four stocks Goldman Sachs is bullish on. These are volatile names, though, so always do your own research before making investment decisions.

Sign up for our MoneyWise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.

Tesla (TSLA)

Tesla has been a favorite among investors. And it’s not hard to see why: shares of the electric car giant have returned a jaw-dropping 992% over the past five years.

While that means long-term investors are laughing all the way to the bank, it’s important to remember that big swings can happen in both directions.

Tesla shares are already down about 41% in 2022.

Still, Goldman is quite bullish on the company. In January, one of its analysts Mark Delaney named Tesla a top pick for 2022. He reiterated a buy rating on the company and raised his price target to $1,200.

Considering that Tesla shares trade at around $709 apiece at the moment, the price target implies upside potential of 69%. “We believe that Tesla, given its leadership position in EVs, and its focus on clean transportation more broadly will be best positioned to capitalize on the long-term shift to EVs,” Delaney wrote in a note to investors.

He’s also optimistic about the company’s improving profitability and production figures.

In Q1, Tesla delivered 310,048 EVs, marking a new record.

“We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue,” the analyst added.

Snowflake (SNOW)

Many consider big data to be the next big thing. And that’s where Snowflake found its opportunity.

The cloud-based data warehousing company, founded in 2012, serves thousands of customers across a wide range of industries, including 241 of the Fortune 500.

While Snowflake shares are down a painful 57% in 2022, the company still commands a market cap of over $45 billion.

In the three months ended Jan. 31, revenue surged 102% year over year to $359.6 million. Notably, net revenue retention rate was a solid 178%.

The company continued to score large customer wins. It now has 184 customers with trailing 12-month product revenue of more than $1 million, compared to 77 such customers a year ago.

Goldman Sachs recently lowered the price target on Snowflake shares to $289 but maintained its buy rating for the company.

Since Snowflake currently trades at around $143.50 apiece, the price target implies a potential upside of 101%.

Match Group (MTCH) and Bumble (BMBL)

The stay-at-home environment caused by the pandemic has fueled the growth at several online dating companies. But that doesn’t mean they’re market darlings at the moment.

Shares of Match Group — which has a portfolio of brands including Tinder, Match, and Hinge — are down 45% over the past 12 months. Bumble — the parent company of Bumble and Badoo apps — has fallen over 60% since the stock started trading last February.

But Goldman Sachs expects a rebound in these two names.

“Match Group & Bumble have underperformed the S&P 500 in '21 and we see the current valuation as an attractive entry point into a multi-year compounded growth story,” wrote analyst Alexandra Steiger in January.

Steiger upgraded both companies from neutral to buy.

She set a price target of $157 on Match, which was later lowered to $152 – still 95% higher than where the stock sits today. For Bumble, Steiger lowered her price target to $42 in March, implying upside of more than 46%.

Both companies have been delivering solid growth figures. In Q1 of 2022, Match Group’s revenue increased 20% while Bumble’s revenue rose 24%.

Sign up for our MoneyWise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.

More from MoneyWise

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.