Goldman Sachs Just Upgraded These 3 Stocks to a Buy Rating

It’s always a good idea to pay close attention to analyst upgrades. Often, they’re influenced by (1) company fundamentals, such as financial health, future growth, and even meetings with management; (2) industry and market trends, including specific market conditions and economics; (3) earnings and financial data, including earnings reports that came in better than expected, or competitive analysis of a competitor, and (4) guidance.

However, before jumping into a stock just because your favorite analyst upgraded it. Be sure to do your own due diligence, fundamentally and technically. That being said, here’s what analysts are most bullish on today.

Biohaven

Analysts at Goldman Sachs initiated a buy rating on Biohaven (NYSE: BVHN | BHVN Price Prediction) with a price target of $23 a share. That implies a potential upside of about 98%.

“BHVN is a clinical-stage biotechnology company with an extensive pipeline of assets, focused on late-stage programs in I&I [inflammation and immunology], epilepsy, and obesity,” said the firm, as quoted by CNBC.

“Of these, we view the opportunity for BHV-1400 in IgA nephropathy (IgAN) as the central driver for the stock and key to our Buy thesis, given its potentially differentiated profile that could allow for significant market share in a >$40B (GSe) U.S. market.”

At the moment, BHVN is just starting to pivot back above its 50-day moving average at $11.60. From here, we’d like to see it initially retest $14 a share.

Vistra Energy 

Goldman Sachs says investors should buy the dip in Vistra (NYSE: VST), noting that it should benefit from its deal with Meta. As noted by Goldman Sachs, the deal increased its 2027 EBITDA estimates by 5%. The firm has a $205 price target on the stock.

“In our view, the Meta deal signaled that the company is able to secure sizeable PPA contracts with a shorter ramp, even in the face of continued policy uncertainty and affordability rhetoric,” they said, as quoted by CNBC.

“Before Meta’s PPA, Vistra had only announced one other PPA with an undisclosed hyperscaler for half of Comanche Peak’s nuclear generation (1.2GW) and minor impact to EBITDA (~1% increase to 2028E) given the ramp time expected by the company,” they added.

Nvidia 

Goldman Sachs is also a big fan of Nvidia (NASDAQ: NVDA). The firm has a buy rating with a $250 price target on the tech giant. It also expects Nvidia to post another beat and raise quarter when it posts earnings on February 25. They also expect NVDA to deliver a $2 billion revenue surprise and for it to outperform bottom-line numbers.

“We expect Nvidia to deliver a ~$2bn revenue beat in 4Q, and we stand 8% above the Street for 1Q revenue,” wrote the analysts in a research note shared with TheStreet. “Our 4Q and 1Q EPS estimates are 5% and 9% above the Street.”

The firm also expects the company to ramp hyper scaler forecasts, raise data center guidance, and see a benefit from growing GPU demand and AI demand. Plus, as the company moves to replace its Blackwell chips with Rubin, progress on that front could be a substantial catalyst.

After catching support at its 200-day moving average at around $169.66, NVDA is just starting to pivot higher. From its last traded price of $185.41, we’d like to see it rally back to $210.

In short, analyst upgrades can point investors in the right direction, but they shouldn’t be followed blindly. As always, doing your own homework matters more than any upgrade.