Goldman Sachs Updates November Stock Watch List

Goldman Sachs has revised its global stock watch list for November, identifying five stocks predicted to rise by over 70%. This list is part of the bank’s Conviction List – Director’s Cut, which highlights recommended stocks each month based on insights from a subcommittee.

In Europe, the subcommittee has added Danish logistics firm DSV, Italian cable company Prysmian, and British hydrogen company Ceres Power. However, it has removed Swedish industrial part manufacturer Atlas Copco, Spanish oil giant Repsol, and Belgian biopharmaceutical company UCB from the list.

For the Asia-Pacific region, added companies include Taiwanese electronics manufacturer Hon Hai, South Korean insurance firm Samsung F&M, Chinese tea room chain Guming, and Indian metal parts maker PTC Industries. In contrast, Chinese sportswear brand Anta, Japanese running shoe producer Asics, Japanese retailer Ryohin Keikaku, China-based Xylabo, and Japanese IT company Fujitsu have been taken off the list.

Goldman identifies several stocks with potential promise:

• Krafton: The South Korean video game publisher has impressed Goldman with its capacity for positive earnings surprises. The firm’s success with PlayerUnknown’s Battlegrounds led to its best first half ever, yet quarterly breakdowns showed some declines. Goldman sees a 92% upside for Krafton.
• Adecco Group: Although the Swiss-French HR company has experienced declining sales and profits, and its third-quarter results are still awaited, Goldman anticipates a 92% rise in Adecco’s stock, citing moderating sales supported by self-help strategies and a new dividend policy.
• Ceres Power: This green hydrogen company is recognized as a leading fuel cell manufacturer in Europe, with Goldman forecasting a potential upside of 79%. The stock has climbed over 52% this year, buoyed by its ongoing partnership with Shell and other initiatives.
• Zalando: Goldman described this German online retailer as a significant player in an undervalued online channel shift following its acquisition of rival About You. Despite a difficult year with a 25% stock decline, they expect Zalando’s stock to rebound by 77%.
• Horizon Robotics: This Chinese company, developing AI chips for self-driving vehicles, has seen its stock rise about 144% this year amid a global AI surge. Goldman has noted its strong product mix aimed at high-end smart driving demand, predicting a 74% increase in stock value.

Additionally, Asian stocks generally appear to be benefiting from a weaker dollar, with investors diversifying away from U.S.-focused portfolios.