Goldman Sachs names its top stocks for 2024, including this solar company
Wall Street analysts are rolling out their favorite stocks to buy in 2024. This week, Goldman Sachs revealed a slew of companies that the firm says have major upside this year. CNBC Pro combed through Goldman’s research to find the firm’s best ideas for 2024. They include First Solar , Target, Delta Air Lines , Boeing and JPMorgan. Target Goldman called Target its best long idea in 2024 in a recent note to clients. “TGT is highly debated and the stock remains under pressure with investors concerned about market share losses,” analyst Kate McShane and her team wrote. Still, the firm said it’s standing by shares of the big-box retailer due to a myriad of positive catalysts. Retailers like Target are poised for a year of “sales inflection” as “normalized demand” begins and a deflationary environment materializes, according to the analyst. “We see long-term growth for TGT tied to market share gains across categories from various mall-based retailers on strong merchandising,” she said. The firm also says its checks show that Target has the “most margin drivers” in 2024. Shares of the company are down more than 11% over the last 12 months, but at this level they are too attractive to ignore, McShane wrote. JPMorgan Banking giant JPMorgan is firing on all cylinders, according to analyst Richard Ramsden. Goldman said it’s getting more “constructive” on the stock in 2024, even as the industry “faces upward deposit pricing pressure, weak loan growth, and credit normalization.” But JPMorgan seems to be rising above it all, the firm wrote. In particular, Ramsden said the bank’s deposit trends are faring better than competitors in the sector. Further, the bank is well positioned to resume buybacks, Ramsden wrote. “While increased buybacks will not have a significant impact on EPS forecasts, we believe that they will be taken as a positive signaling mechanism by investors,” he added. Ramsden also said the bank has pricing power, which can be used to control deposit costs. JPMorgan shares are up 21% over the last 12 months, and the stock sits on Goldman’s prestigious conviction buy list. “JPM has been the clear beneficiary of market share gains, implying best-in-class revenue upside,” Ramsden said. The bank also reported fourth-quarter earnings on Friday . First Solar Shares of First Solar are too cheap to ignore, analyst Brian Lee. The firm said it sees major upside for the stock in 2024 as rules from the Inflation Reduction Act, a landmark climate change policy, begin to take shape. “Additionally, we see significant growth visibility and momentum emerging in the US utility-scale vertical once the Treasury releases more guidance on the IRA bill,” the analyst wrote. First Solar also has pricing power, which should allow it to flourish even as interest rates remain high, Lee added. “Following a healthy rebound in 2023, we expect US utility scale solar demand to be up double digits again in 2024, or +20% yoy,” he wrote.. First Solar shares are down 10% over the last 12 months, but the stock also remains on the firm’s conviction buy list. “Highest quality growth with compounding EPS growth visibility into ’26 & beyond,” Lee said. Delta Air Lines “We remain Buy-rated on DAL shares and reiterate our $47, 12-month price target (14% upside potential). Our Buy-rating is underpinned by 1) accelerating growth in company-specific, less-cyclical, high margin businesses (e.g. MRO, loyalty); 2) exposure to end markets that are still recovering (e.g. Asia Pacific, corporate); and 3) relatively strong balance sheet.” Target “Our view that FY24 could be a year of sales inflection for several retailers and/or a sales acceleration for others as we enter into a more normalized demand environment for services & goods. … TGT is highly debated & the stock remains under pressure with investors concerned about market share losses … We see long-term growth for TGT tied to market share gains across categories from various mall-based retailers on strong merchandising. … We flag OLLI and TGT as having the most margin drivers in FY24.” JPMorgan “We are constructive on JPM on their best-in-class revenue upside, as it is a clear beneficiary of market share gains as the industry faces upward deposit pricing pressure, weak loan growth & credit normalization. … While increased buybacks will not have a significant impact on EPS forecasts, we believe that they will be taken as a positive signaling mechanism by investors. … JPM has been the clear beneficiary of market share gains, implying best-in-class revenue upside.” First Solar “Highest quality growth with compounding EPS growth visibility into ’26 & beyond. Additionally, we see significant growth visibility & momentum emerging in the US utility-scale vertical once the Treasury releases more guidance on the IRA bill. … Following a healthy rebound in 2023, we expect US utility scale solar demand to be up double digits again in 2024, or +20% yoy.” Boeing “Global air travel continues to recover, which along with replacement is driving very strong new aircraft order activity from the airlines. That is ultimately the most significant driver of forward cash flow for Boeing. Supply chain has held back ability to meet demand with output, but we think 2024 will be a major inflection year on that front and deliveries will grow fast from here.”
