Goldman Sachs Raises Price Targets on 4 Red-Hot Stocks

February 27, 2019 by Lee Jackson

With just over a month left in the first quarter, and most fourth-quarter results already posted, most on Wall Street are reasonably satisfied with how things have turned out. While many investors remain very nervous, especially given the large outflows from many sectors and holdings, the overall take is one of slow but steady growth going forward.

In a series of new reports, Goldman Sachs has raised the price targets on some companies that delivered the goods in a big way, and given the increases in these targets, they still look to have some very solid upside potential. Here we spotlight four of those stocks that are rated Buy at the firm.

Etsy

This company posted outstanding results for the quarter and was up big on Tuesday. Etsy Inc. (NASDAQ: ETSY) engages in the management of an online marketplace. It operates a technology platform that allows sellers to manage and scale their business. It offers handmade products such as shoes, clothing, bags and accessories. It operates through the United States and International geographical segments.

The company posted better-than-expected earnings, and Etsy CEO Josh Silverman attributed the holiday season results to a number of factors, including an improved selling platform and more competitive shipping prices. Etsy stock has skyrocketed more than 221% over the past year, while the S&P 500 index inched up 0.6% in that period.

The $54 Goldman Sachs price target was raised to $76. The consensus target is $59.15, which is sure to go higher as firms across Wall Street raise targets as well. Etsy shares closed Tuesday at $68.65, up almost 17% on the day.

Evoqua Water Technologies

This stock has rallied smartly from lows but remains in a sector that has monster upside potential. Evoqua Water Technologies Corp. (NASDAQ: AQUA) is focused on providing water treatment solutions. It offers services, systems and technologies to support customers’ full water lifecycle needs.

Evoqua has a comprehensive portfolio of differentiated, proprietary technology solutions and operates through three segments. The Industrial Segment provides application-specific solutions and full lifecycle services for critical water applications that selectively utilize its comprehensive portfolio of water treatment technologies to satisfy its customers’ unique water needs.

The Municipal Segment provides engineered solutions and equipment for the treatment of wastewater, purification of drinking water and odor and corrosion control for municipalities. Lastly, the Products Segment sells differentiated technologies to a diverse set of water treatment system specifiers, integrators and end users globally.

Goldman Sachs has a $16 price objective, up from $12, while the consensus target is $13.60. Shares closed Tuesday at $13.48.

Exact Sciences

This stock has been totally on fire. Exact Sciences Corp. (NASDAQ: EXAS) is a molecular diagnostics company focused on the early detection and prevention of the deadliest forms of cancer. The company has commercialized a next-generation non-invasive colorectal cancer screening test, Cologuard, which received concomitant FDA approval and Medicare coverage in 2014.

Cologuard is included in the colorectal cancer screening guidelines of the American Cancer Society and stool DNA is included in the U.S. Multi-Society Task Force on Colorectal Cancer. The company reaccelerated new doctor additions, has expanded television advertising and signed several new Anthem/BCBS contracts over the last year, allowing them to go back to some noncompliant patients. Wall Street sees an $18 billion total addressable market that is less than 5% penetrated currently.

Goldman Sachs raised its price objective to $120 from $85. The consensus target is $93.45, and shares closed Tuesday at $92.62.

Kosmos Energy

This is a solid energy exploration and production play for aggressive accounts looking for energy ideas. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas exploration and production company focused on the Atlantic margin. Its focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.

The company posted solid quarterly results, and its decision to reduce its stake in discoveries offshore Senegaland Mauritania should help unlock the assets’ value and transform the company’s investment story. Some analysts feel that with the liquefied natural gas market growing once more, if Kosmos Energy reduces its stake in the discoveries to 10% from 30% currently, the company could net as much as $1.5 billion. Some feel that the proceeds could be used to pay investors a special dividend, as well as for more focus on Kosmos Energy’s exploration assets in West Africa, Suriname and the Gulf of Mexico.

The Goldman Sachs price target rose to $8 from $7, though the consensus target is $8.27. Shares closed on Tuesday at $6.51.

These four top companies are executing well and their stocks look to still have very solid upside to the Goldman Sachs price targets. These stocks are better suited for accounts with a higher risk tolerance, as overall they do tend to be more volatile.

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