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Wall Street analysts are announcing their favorite stocks to buy in 2024. This week, Goldman Sachs revealed a number of companies that it says have significant upside potential this year. CNBC Pro scoured Goldman’s research to find the company’s best ideas for 2024. These include First Solar, Target, Delta Air Lines, Boeing, and JP Morgan. Target Goldman called Target its best idea long into 2024 in a recent note to clients. Analyst Kate McShane and her team wrote: “TGT is highly debated and the stock remains under pressure with investors concerned about market share loss.” Still, the company said it supports the major retailer’s stock price due to a myriad of positive factors. The analyst said retailers like Target are bracing for a year of “modulation in sales” as “demand normalizes” and a deflationary environment materializes. “We believe TGT’s long-term growth will be tied to increased market share across categories by a variety of mall-based retailers with strong merchandising,” she said. The company also said its research shows Target has the “most margin-enhancing drivers” in 2024. The company’s stock price has fallen more than 11% in the past 12 months, but at these levels it’s too attractive to ignore, McShane wrote. Banking giant JPMorgan is firing on all cylinders, according to analyst Richard Lumsden. Goldman said it expects stock prices to be more “positive” in 2024, even though the industry “faces upward pressure on deposit prices, slowing loan growth, and credit normalization.” But JPMorgan appears to have outgrown all that, the company writes. In particular, Lumsden said the bank’s deposit performance was stronger than that of its competitors in the sector. Additionally, the bank is well-positioned to resume share buybacks, Ramsden wrote. “Although the increase in share buybacks will not have a material impact on EPS expectations, we believe it will be perceived by investors as a positive signaling measure,” he added. Ramsden also said the bank has pricing powers that it can use to control deposit costs. JPMorgan shares have gained 21% in the past 12 months, and the stock is on Goldman’s prestigious Conviction Buy List. “JPM is a clear beneficiary of market share gains, suggesting best-in-class earnings upside,” Ramsden said. The bank also announced fourth-quarter earnings on Friday. Analyst Brian Lee says First Solar stock is too cheap to ignore. The company said it expects stock prices to rise significantly in 2024 as the rules of the Inflation Control Act, a landmark climate change policy, begin to take shape. “Furthermore, we expect significant growth prospects and momentum to emerge in the U.S. utility scale sector once the Treasury Department issues further guidance on the IRA bill,” the analysts wrote. First Solar also has pricing power and should be able to grow even if interest rates remain high, Lee added. “Following a healthy recovery in 2023, we expect U.S. utility-scale solar power demand to once again grow by double digits in 2024, or +20% year over year,” he said. Although First Solar’s stock price has fallen 10% in the past 12 months, the stock also remains on the company’s conviction buy list. “Compounding EPS growth expectations beyond 2020 delivers the highest quality growth,” Lee said. Delta Air Lines: “We continue to maintain a Buy rating on DAL stock and reiterate our $47.00, 12-month price target (14% upside potential). Our Buy rating is based on: 1) company-specific; 2) exposure to end markets that are still recovering (e.g. Asia-Pacific, corporate); 3) Relatively strong balance sheet. Target: FY24 could be a year of mixed sales for some retailers and/or acceleration for others as we enter a more normalized demand environment for services and goods Our view is that…TGT is highly debated and the stock price remains under pressure.”Investors are concerned about market share loss…TGT’s long-term growth remains strong. We see this tied to increased market share across categories for various mall-based retailers due to merchandising… We judge OLLI and TGT to be the most profitable in FY24 are doing. ” JPMorgan: “Best-in-class earnings upside as JPM is a clear beneficiary of market share gains as the industry faces upward pressure on deposit prices, slowing loan growth and credit normalization.” We are positive about JPM in this regard. …On the other hand, we do not expect an increase in share buybacks.” We believe that this will be perceived by investors as a positive signaling measure, as it has a significant impact on EPS forecasts. ing. …JPM is the clear beneficiary of market share gains, suggesting best-in-class earnings upside. ” First Solar “Highest quality growth with compounding EPS growth outlook for 2026 and beyond.Additionally, if the Treasury issues further guidance on IRA legislation, U.S. utilities We see significant growth prospects and momentum in the scale industry.… Following a healthy rebound in 2023, U.S. utility-scale solar power demand will once again grow by double digits in 2024, or up from the previous year. Boeing: “Global air travel continues to recover, and airline ordering activity for new aircraft, along with replacements, is very strong.” This is ultimately the most important driver of future cash flow for Boeing, as the supply chain is constraining its ability to meet demand with production.”However, 2024 will be a major turning point on this front, with deliveries I think it will rapidly increase from here. ”
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