Goldman Sachs has made significant adjustments to its Americas Conviction List – Director’s Cut, adding Fox Corp (FOXA), Global-E Online (GLBE), and Snowflake (NYSE:) to its curated selection of Buy-rated stocks.
At the same time, Monday .com (MNDY (NASDAQ:)) and Quanterix (NASDAQ:) were removed from the list.
For FOXA, analysts note the company’s strong network portfolio in news and sports, which is believed to remain resilient amid ongoing cord-cutting pressures in the media landscape.
Analysts project a 12% upside to 2025 Street EBITDA estimates, primarily driven by the Television segment. This growth is attributed to a robust lineup of sporting events, benefits from political advertising, and the company’s strategic optimization of sports rights.
“Analysts believe these drivers should more than offset core advertising declines. There is also an underappreciated value of FOXA’s unconsolidated assets,” Goldman said in the note.
Analysts covering GLBE see the company as a key player in the fast-growing segments of cross-border eCommerce and direct-to-consumer (DTC) eCommerce. They anticipate organic growth acceleration for GLBE in the second half of 2024 and into 2025, supported by a stabilizing consumer environment, improvements to its Shopify Markets Pro, and a strong pipeline of new partnerships. The analysts’ 2025 EBITDA estimates are 16% above consensus.
Lastly, SNOW also made its way to the conviction list, highlighted by analysts as an attractive investment opportunity in the cloud software sector, particularly for its data storage and analytics capabilities.
Analysts think the increasing use cases for data will drive the next phase of the AI revolution, from platform development to application implementation.
“Analysts believe SNOW’s new CEO’s strategy to accelerate product development will increase velocity and customer consumption which will culminate in a rare combination of fast top-line growth and high free cash margins that SNOW’s current valuation does not reflect,” the note says.
