Goldman Sachs refreshed its lists of top global stock picks for June by adding some and removing others. The stocks are captured in the investment bank’s “Conviction List – Directors’ Cut” and seeks to offer investors a “curated and active” list of 15 to 25 buy-rated stocks. The stocks are selected by a group designated by the bank’s Investment Review Committee for each region. “The subcommittee will collaborate with each sector analyst to identify top ideas that offer a combination of conviction, a differentiated view and high risk-adjusted returns,” Goldman Sachs said. Here are three of the latest additions to Goldman’s directors’ cut lists — for Asia-Pacific and Europe — that were given more than 40% upside potential in the next 12 months. Elite Material Goldman is bullish on Taiwanese electronic components manufacturer Elite Material and calls it an “underestimated AI player with solid market share” in AI-powered PCs, servers and smartphones. “EMC is the technology leader in high-end/high-speed CCL [Copper Clad Laminate] (used in server/AI server/switches etc. most advanced IT equipment),” and has a global market share of over 40%, even though its products are priced around 20% higher than its peers, the investment bank’s analyst Chao Wang noted in a June 2 research note on its Asia picks. Shares of Elite Material are traded on the Taiwan Stock Exchange as well as the SmartETFs Asia Pacific Dividend Builder ETF (2.9% weight). Goldman has a target price of 685 New Taiwan dollars ($21.16) on the stock, implying 54.1% potential upside. Thai Oil Goldman also likes petroleum refining company Thai Oil thanks to its “strong cash flow generation,” “declining capex intensity stronger earnings power.” The bank’s analyst Nikhil Bhandari highlighted that the company’s Clean Fuel Project to generate sustainable fuel stands to generate a 45% increase in capacity and 40% EBITDA/bbl (earnings before interest, taxes, depreciation and amortization per barrel) margin accretion. This will eventually translate to an EBITDA CAGR (compound annual growth rate) of 37% over 2024 to 2026, he added. Thai Oil — which is a subsidiary of Thailand’s state-owned PTT Public Company — is listed on the Stock Exchange of Thailand and trades as an American Depositary Receipt (ADR) on the Nasdaq. Goldman has a target price of 75 Thai baht ($2.04) on the stock, implying 43.5% potential upside. Signify Also among Goldman’s additions to its directors’ cut list is Dutch lighting corporation Signify . The investment bank has a target price of 38 euros ($40.80) on the stock, which represents an upside potential of about 63.2%. Signify, which previously went by the name Philips Lighting, was founded from the spin-off of the lighting division of Philips. Among the merits Signify offers is its “Idiosyncratic margin acceleration amid bottoming end-market destocking,” analyst Daniela Costa noted in a June 3 research note on the bank’s Europe picks. She added that the company will also be “a key beneficiary” of an inflection in Europe’s construction sector, given that the segment is the “largest end market” for Signify, with a contribution of around 76%. Shares of Signify are traded in the Euronext Amsterdam stock exchange and as an ADR on the Nasdaq. — CNBC’s Michael Bloom contributed to this report.
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