Tesla (TSLA)
Tesla has been a favorite among investors. And it’s not hard to see why: shares of the electric car giant have returned a jaw-dropping 1,414% over the past five years.
While that means long-term investors are laughing all the way to the bank, it’s important to remember that big swings can happen in both directions.
Tesla shares are already down about 34% in 2022.
Still, Goldman is quite bullish on the company. On Jan. 10, one of its analysts Mark Delaney named Tesla a top pick for 2022. He reiterated a buy rating on the company and raised his price target to $1,200.
Considering that Tesla shares trade at around $793 apiece at the moment, the price target implies upside potential of 51%.
“We believe that Tesla, given its leadership position in EVs, and its focus on clean transportation more broadly will be best positioned to capitalize on the long-term shift to EVs,” Delaney wrote in a note to investors.
He’s also optimistic about the company’s improving profitability and production figures.
In Q4, Tesla delivered 308,600 EVs, marking a new record.
“We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue,” the analyst added.
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Learn MoreMicron Technology (MU)
Semiconductor chip makers have largely done well for investors since the onset of the pandemic.
Micron Technology, for instance, is now trading about 70% higher compared to two years ago.
And Goldman Sachs sees further upside ahead in the chipmaker.
The investment bank has a buy rating on Micron and recently raised its price target from $101 to $116 in January, suggesting upside of 61% from current levels.
Micron is one of the leaders in memory and storage solutions. In 2021, the company brought in $27.7 billion of total revenue.
And things have continued to improve in Micron’s fiscal 2022.
For Q1, ended Dec. 2, 2021, the company generated $7.7 billion of revenue, representing a 33% increase year over year. Adjusted earnings, meanwhile, jumped 177%.
Micron earns about 73% of its revenue from dynamic random-access memory products. And Goldman Sachs likes the potential of that market.
“Following recent industry checks, we are incrementally more positive on the DRAM supply/demand outlook due to favorable supply dynamics and an improving demand outlook,” commented Goldman analyst Toshiya Hari in January.
Match Group (MTCH) and Bumble (BMBL)
The stay-at-home environment caused by the pandemic has fueled the growth at several online dating companies. But that doesn’t mean they’re market darlings at the moment.
Shares of Match Group — which has a portfolio of brands including Tinder, Match, and Hinge — are down 44% over the past 12 months. Bumble — the parent company of Bumble and Badoo apps — has fallen over 70% since the stock started trading last February.
But Goldman Sachs expects a rebound in these two names.
“Match Group & Bumble have underperformed the S&P 500 in '21 and we see the current valuation as an attractive entry point into a multi-year compounded growth story,” wrote analyst Alexandra Steiger in January.
Steiger upgraded both companies from neutral to buy.
She set a price target of $157 on Match, which was later lowered to $152 – still 75% higher than where the stock sits today. For Bumble, Steiger recently lowered her price target to $42, implying upside of more than 90%.
Both companies have been delivering solid growth figures. In Q4 of 2021, Match Group’s revenue increased 24% while Bumble’s revenue rose 26%.
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