With just a week left in the third quarter, and most of the second-quarter results long since posted, most on Wall Street are reasonably satisfied with the results. While many investors remain very nervous, especially given the large rally off the market lows, the overall take is one of slow but steady going forward, given the incredible turmoil in the equity markets and the economy due to the COVID-19 crisis.
In a series of new reports, Goldman Sachs raises the price targets on shares of some companies that delivered the goods in a big way and, given the increases in targets, still look to have some very solid upside potential. Here we spotlight four of those stocks.
While all four are rated Buy at Goldman Sachs, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Crown Holdings
This packaging products leader is a great idea for conservative investors and may have even more upside potential. Crown Holdings Inc. (NYSE: CCK) designs, manufactures and sells packaging for consumer goods in the Americas, Europe and the Asia-Pacific.
The company offers aluminum beverage cans and ends, and other packaging products to beverage and beer companies; food cans and ends, including two-and three-piece cans in various shapes and sizes for food marketers; and aerosol cans and ends for manufacturers of personal care, food, household and industrial products. It also provides metal and composite closures, and capping systems and services, as well as various specialty containers comprising lid and closure variations.
The Goldman Sachs analysts noted this in a new research report:
Looking past near-term trends, Crown Holdings has visibility into continued solid volume growth in North America through at least 2023 (based on contractual customer commitments) that should at least match the expected 15% increase in industry capacity in the next 18 months while also potentially opening up tactical pricing opportunities.
The Goldman Sachs price target was lifted to $83 from $75, while the Wall Street consensus target is $81.85. Wednesday’s closing print for Crown Holdings stock was $73.15 per share.
HubSpot
This stock has rallied up large, but a recent pullback offers a good entry point for aggressive investors. HubSpot Inc. (NYSE: HUBS) is a cloud-based provider of inbound marketing tools such as website content management, blogging tools, email campaign, search engine optimization, social media monitoring and management, customer relationship management and others for small businesses and midsized companies.
The company’s tools provide a single console for marketing professionals to generate new customer leads, convert leads to customers and customers to repeat customers. Goldman Sachs remains impressed and noted this:
The company is focused on sustaining high growth through increased penetration of its existing market, adding more product Hubs, and further expansion upmarket. We were encouraged to hear that COVID is no longer a headwind and as of June had turned into a tailwind, as businesses are looking to digitally transform their go to market efforts, in many cases choosing HubSpot as a key partner.
Goldman Sachs raised its $290 price objective to $332. The consensus target is $269.76, and Wednesday’s closing price for HubSpot stock was $283.17 a share.
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