Goldman Sachs Updates Conviction List of Top Stocks in Asia Pacific

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Goldman Sachs,Stocks,Asia Pacific

Goldman Sachs has refreshed its conviction list of top stocks in Asia Pacific this month, adding some names and removing others. The bank remains optimistic on the region, noting that it has a solid outlook this quarter.

"Five factors are likely to influence Asian market performance in 2Q: the start of a rate cutting cycle, led by the Fed; elections and geopolitics; 1Q earnings results; market-specific policy; and seasonality," the investment bank's analysts wrote in an April 7 note. Looking ahead, they expect the the MSCI Asia Pacific ex-Japan index to post earnings growth of 15% and 11% in 2024 and 2025 respectively.

India's power generation company — formerly the National Thermal Power Corporation — was another addition to Goldman's conviction list. Analyst Apoorva Bahadur says the company is set to benefit both from worsening power shortages and the renewable transition more broadly. states on its website that it has an installed capacity of over 75 gigawatts, and plans to raise this to 130 gigawatts by 2032. Bahadur believes its renewable business has the potential to "re-rate, with the company benefiting from decline in module prices, progress on new energy plans and potential monetization." Shares in the power generation player are nearly 104% over the last 12 months.

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