Analysts at Goldman Sachs named five stocks to play themes including artificial intelligence, electric vehicles and energy-efficiency, with two on its conviction list: Mercedes-Benz and Daikin Industries . Its picks are buy-rated names "whose exposure to enduring themes complements a compelling equity story," according to a research note published Aug. 21. The bank named carmaker Mercedes-Benz as its top pick among European autos for its focus on luxury EVs.
reported last month that its quarterly revenue fell 10% year over year , but Goldman expects a "sharp rebound" in the next two years on the back of demand for high-performance chips. The bank forecast revenue growth of 27% in 2024 and 19% in 2025. "At a valuation that is at the lower end of the range for the past ten years,
shares do not reflect the higher multiple that is justified by its position as a key generative AI enabler," the analysts said. Goldman gave the stock an estimated 30% upside to its 12-month price target. Clean energy Japanese heating, ventilation and air-conditioning specialist Daikin Industries plays to Goldman's energy-efficiency theme and has "a track record of meeting or exceeding profitability targets and posting sales growth that outpaces global peers," the bank said.