IMPORTANT POINTS:
- Goldman Sachs named some Chinese technology stocks, which could rise despite headwinds in the Asian country.
- The bank relied on improvements in the advertising field and a sure increase in consumption until the end of the year.
- Among the companies Goldman chose are: Alibaba, Tencent, Baidu and Pinduoduo.
Goldman Sachs picked four Chinese stocks to buy right now and hold until the end of the year.
The bank believes that there have been improvements in advertising technology and projects that there will be an increase in consumption in the coming months, as Christmas approaches.
In addition, from Goldman, argued that China registered a “solid” increase in revenue after the successful performance in the 6.18 shopping event, the second-largest annual online shopping festival in the country.
Goldman’s Picked Chinese Stocks
Analysts at the US bank named four companies that have a buy rating.
First of all, he targeted Alibaba (BABA). They believe that the company has a huge projection in its cloud business, the company’s management has stabilized and the share buyback announcement boosted confidence in the firm.
That is why experts set a US $138 price target, suggesting a potential upside of close to 45%.
The second pick went to Baidu (BIDU). “ We continue to see Baidu as one of the top-ranked internet names in China, pivoting towards the secular theme of generative AI underpinned by its 4-layer generative AI service offerings,” the analysts said.
Following this, the pros put a $197 price target, suggesting a 38% upside.
Lastly, he named giant Tencent, with a HK$431 price target (32% upside potential), and also picked Pinduoduo, with a $129 price target (27% upside potential).
“In our opinion, Tencent continues to be one of China’s most uniquely positioned Internet companies due to its unrivaled WeChat ecosystem, its leadership in gaming, and new growth vectors in Video Account and Fintech,” Goldman analysts closed.
