With a very strong start to the new year and fourth-quarter earnings results still pouring in, many investors are resetting for what could be a tricky balance for the rest of the year. The confluence of the highest inflation in 40 years, a deadly and now one-year-old conflict between Russia and Ukraine looking like a stalemate, a rising interest rate scenario that could include as many as two additional rate hikes this year and the fear that the market and the economy could possibly tumble has caused many growth stock investors to pause.
[in-text-ad]
One of Wall Street’s most respected lists of stock picks is the Goldman Sachs Conviction List. These are the firm’s top picks, spread across 10 sectors, for high-net-worth and institutional investors. We screened the list looking for the companies that had the largest upside to the assigned target prices at Goldman Sachs. We found five that aggressive growth investors may want to add to portfolios. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

BioMarin Pharmaceuticals

This stock is a Wall Street favorites, and the company posted solid earnings last year. BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company’s product portfolio includes five approved products and multiple clinical and preclinical product candidates.

Over the past decade, BioMarin has become one of the top orphan drug companies, and it looks poised to stay there. Roche has been mentioned as a company that could be looking at BioMarin. Roche is heavily focused on oncology drugs and invests heavily in early-stage molecules.

Goldman Sachs is positive on BioMarin and has remained so for years, based on pipeline optionality and clinical and commercial execution. The company is actively involved in evaluating new programs, both genome medicine and others, and its manufacturing expertise positions it to take a key leading role or to “catch up” to competitors in genome medicine, while solid fundamentals will continue to support long-term pipeline innovation.

The Goldman Sachs price objective on BioMarin Pharmaceutical stock is $170. The consensus target is $122.52, and shares ended Monday trading at $112.18, so the upside to the Goldman Sachs target is 50%.

Bunge

This top mid-cap stock has rallied nicely off the 2022 lows but still offers investors an outstanding entry point. Bunge Ltd. (NYSE: BG) operates as an agribusiness and food company worldwide. It operates in the following segments.
Bunge’s Agribusiness segment purchases, stores, transports, processes and sells agricultural commodities and commodity products, including oilseeds (primarily soybeans, rapeseed, canola and sunflower seeds) and grains (primarily wheat and corn) and vegetable oils and protein meals. It provides its products for animal feed manufacturers, livestock producers, wheat and corn millers and other oilseed processors, as well as third-party edible oil processing companies, as well as for industrial and biodiesel production.
[in-text-ad]
Its Edible Oil Products segment provides packaged and bulk oils and fats, including cooking oils, shortenings, margarines, mayonnaise and others for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies and other food manufacturers, as well as grocery chains, wholesalers, distributors and other retailers.

The Milling Products segment offers wheat flours and bakery mixes, corn milling products (including dry-milled cornmeals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified cornmeal, corn-soy blends, and other products), whole grain and fiber ingredients and milled rice products.

The Sugar and Bioenergy segment produces sugar and ethanol, and it generates electricity from burning sugarcane bagasse. The Fertilizer segment offers nitrogen, phosphate and potassium fertilizers, as well as single super phosphate, ammonia, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple superphosphate, urea, urea-ammonium nitrate, ammonium sulfate and potassium chloride.

Bunge stock investors receive a 2.50% dividend. Goldman Sachs has a $170 price target, while the consensus target is just $130.80. Monday’s close at $98.58 means hitting the Goldman Sachs target would be a 68% gain.

Datadog

This is a name some investors may not be as familiar with, but it holds tremendous upside potential. Datadog Inc. (NASDAQ: DDOG) engages in the development of monitoring and analytics platforms for developers, information technology operations teams and business users. The company’s platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide real-time observability of its customers’ entire technology stack.
Datadog announced recently the extension of Network Performance Monitoring (NPM) to Windows. Datadog NPM now monitors the performance of network communications between applications running on Windows Server and Linux, providing seamless network visibility across cloud environments, on-premises data centers and operating systems.
[in-text-ad]
The analysts noted last year that, based on the strength of its expanding product portfolio that addresses critical aspects of customers’ cloud migration, coupled with a solidly profitable business model that generates rising free cash flow margins alongside hyper-growth, Datadog is poised to grow into a preeminent infrastructure software business.

The $128 Goldman Sachs price target is well above the $106.62 consensus in Datadog stock. Monday’s final print of $76.96 was down over 3% on the day. Rising to the Goldman Sachs target would be a 60% gain.

Salesforce

This company was an innovator in customer relationship management software. Salesforce Inc. (NYSE: CRM) provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.

The company’s service offerings include:

• Sales, to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence and deliver quotes, contracts and invoices
• Service, which enables companies to deliver trusted and highly personalized customer service and support at scale.

Its Service offerings also comprise flexible platform that enables companies of various sizes, locations and industries to build business apps to bring them closer to their customers with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.

Further Service offerings include:

• Marketing, which enables companies to plan, personalize and optimize one-to-one customer marketing journeys
• Commerce, which empowers brands to unify the customer experience across mobile, web, social and store commerce points
• Tableau, an end-to-end analytics solution serving various enterprise use cases
• MuleSoft, an integration offering that allows its customers to unlock data across their enterprise

Salesforce provides its Service offerings for customers in financial services, health care and life sciences, manufacturing and other industries.
Salesforce also offers professional services and in-person and online courses to certify its customers and partners on architecting, administering, deploying and developing its service offerings. The company provides its services through direct sales and consulting firms, systems integrators and other partners.
[in-text-ad]
Goldman Sachs has set its price objective at $300, which towers over the $190.91 consensus target. Monday’s close was at $169.05. Salesforce stock hitting the Goldman Sachs target would be an incredible 75% gain.

Seagen

While somewhat more off the radar, this biotechnology stock may prove to be a huge winner this year. Seagen Inc. (NASDAQ: SGEN) develops and commercializes therapies for the treatment of cancer in the United States and internationally.

The company’s offerings include the following:

• Adcetris, an antibody-drug conjugate (ADC) for the treatment of patients with Hodgkin lymphoma or CD30-positive T-cell lymphomas
• Padcev, an ADC targeting Nectin-4 for the treatment of advanced or metastatic urothelial cancer
• Tukysa, an oral small molecule tyrosine kinase inhibitor for the treatment of adult patients with advanced unresectable or metastatic HER2-positive breast cancer
• Tivdak for metastatic cervical cancer and other solid tumors
• Ladiratuzumab Vedotin, an ADC targeting LIV-1 for metastatic breast cancer and solid tumors
• Disitamab Vedotin, a novel HER2-targeted ADC

It also offers SEA-CD40, SEA-TGT, SEA-BCMA and SEA-CD70 for various cancer diseases.

Seagen has collaboration agreements with Agensys, Genmab, Merck, RemeGen and Takeda Pharmaceutical.

Seagen stock has a $213 price target at Goldman Sachs. The consensus target is just $162.57. From  Monday’s close at $136.00, the upside to the firm’s target would be 55%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Five outstanding companies that are the top picks at Goldman Sachs that all have a dominant position in their respective silos, and all have some huge upside to the target prices. Given that more of the same trouble we have seen this year could be coming our way in the first half of 2023 in the form of interest rates increases, inflation and market volatility, it makes sense to scale into positions slowly.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.